In the application component Product Cost by Sales Order, the sales document items (items in inquires, quotations, or sales orders) function as the cost objects for which you can determine costs and revenues in both planned and actual data.
If you have already created a sales document item that carries costs and revenues for an inquiry or quotation, the subsequent sales document item (such as the sales order item) references the previous one. This enables you to manage the costs of the entire sales and distribution process. You can also flag a sales order item without a previous inquiry and quotation as carrying costs and revenues.
In sales-order-related production, you use the functions of Product Cost by Sales Order to collect and analyze the costs in
Inmass production on the basis of sales orders, the focus of cost management is on the material being produced. If you are using a valuated sales order stock in mass production on the basis of sales orders, you can collect and analyze the costs on manufacturing orders (production orders or process orders) or product cost collectors. In this case you control the costs of the products. The flow of quantities and values corresponds to that of make-to-stock production, while the cost accounting method costs the products.
For information on product cost management at the level of manufacturing orders, refer to the following documentation:Product Cost by Order
For information on product cost management at the level of product cost collectors, refer to the following documentation:Product Cost by Period
For information on the use of product cost collectors in sales-order-related production, refer to the following section:Product Cost Collectors in Sales-Order-Related Production
The documents Product Cost by Order and Product Cost by Period are also relevant if you are a manufacturing enterprise and are interested in using the Product Cost by Sales Order component in conjunction with Product Cost by Order or Product Cost by Period.
You can use the Product Cost by Sales Order component in the following situations:
The Product Cost by Sales Order component enables you to do the following:
You use the Product Cost by Sales Order component in the following situations:
Product Cost by Sales Orderaccesses master data and transaction data in Controlling (CO), Sales and Distribution (SD), and Materials Management (MM). In manufacturing enterprises, Product Cost by Sales Order also accesses data in Production Planning (PP) or Production Planning for the Process Industries (PP-PI).
If you are a manufacturing enterprise, you normally use Product Cost by Sales Order in conjunction with Product Cost by Order or Product Cost by Period.
To estimate the costs for materials, you use the Product Cost Planning component (CO-PC-PCP).
You can view planned costs, target costs, and actual costs in the Product Cost Controlling Information System (CO-PC-IS).
With the Product Cost by Sales Order component you can collect and analyze costs for:
You can supplement the display of these funds commitments with the purchase requisition commitment and the purchase order commitment for the sales order item.
Flagging a sales order item as carrying costs and revenues enables you to:
You can do the following at the end of the period:
In Product Cost by Sales Order you normally use a valuated sales order stock. In a manufacturing enterprise, the unfinished goods are valuated through the calculation of work in process (WIP) on the manufacturing orders assigned to the sales order item. Materials that have been manufactured but not yet delivered are valuated at the time of the goods receipt posting for the manufacturing order (production order or process order). You can valuate goods that have been delivered but not yet invoiced using results analysis. Settling to FI capitalizes goods in transit and goods at construction sites in your balance sheet. You can also represent the valuation of goods in transit and goods at construction site with the functions in FI.
If you are not using Sales and Distribution, you can create a customer requirement for the material in Production Planning. The costs and revenues can be assigned to this requirement and analyzed in the information system.
You cannot determine variances for the sales document item.
For information on valuated sales order stocks, read the following sections:Valuated Sales Order Stock Update of Valuated Sales Order Stock Standard Price with Valuated Sales Order Stock Viewing Valuated Special Stocks Example for Valuated Sales Order Stock Without Product Cost by Sales Order: Quantity and Value Flow Product Cost Collectors in Sales-Order-Related Production Variances with a Valuated Sales Order Stock
For information on sales order items that carry costs and revenues, refer to the following section:Sales Order Item That Carries Costs and Revenues
For information on logistical processing such as assembly processing and variance manufacturing, refer to the following section:Selected Logistical Processes and Cost Objects in Cost Object Controlling
For information on the special requirements with a nonvaluated sales order stock, refer to the following section:Special Case: Nonvaluated Sales Order Stock
For more information on the master data in Controlling and Production Planning, as well as other basic information, see the following section:Cost Object Controlling
For detailed information on master data in Sales and Distribution, as well as other information on sales and distribution processing, see the document SD Sales and Distribution Processing.
You can view the data of the Product Cost by Sales Order component in the information system in a number of different formats. For more information, see the document Product Cost Controlling Information System.
For detailed information on Profitability Analysis, see the document CO Profitability Analysis.
For detailed information on Profit Center Accounting (EC-PCA), see the document EC Enterprise Controlling.
In engineer-to-order environments, you link a project to the sales order. The necessary information on cost management for a project can be found in the document Project System.