actual costing

Product Cost Controlling (CO-PC)

An alternative to standard cost accounting, allowing you to assign the costs incurred in the period directly to your materials.

Actual costing in the R/3 System refers to materials that are valuated with a preliminary standard price and then revaluated with the difference between the preliminary price and actual cost.

For every transaction that is relevant to valuation (such as goods receipts, invoice receipts, or settlement of production orders), the system collects the preliminary standard price and the variances from that price (such as price differences and exchange rate differences). At the end of the period you can apply these variances to the material inventories and consumptions of the previous period. This is done across multiple production levels. The result is material valuation that is based on the periodic actual values.