When products are costed by period for an individual material, the costs incurred for production are displayed on a product cost collector without reference to the sales order.

When you post the goods receipt for the finished material, the system valuates this material and credits the product cost collector. These actions reflect the value determined by the cost estimate marked for the sales order item. This value is also used to display the cost of goods manufactured (COGM) on the sales order in Profitability Analysis (CO-PA).

At period end, the variances on the product cost collector are settled to the material. These variances are not displayed in detail for the customer and the material in Profitability Analysis. They are displayed only for the overall material.