
Managing Quality-Related Costs
Purpose
The Controlling (CO) application component is responsible for managing all costs in the R/3 System (for example, planning, monitoring, settling, and analyzing all costs that originate in the different operational areas of a company). The CO component maintains different order categories to classify the cost-related orders that originate in the various SAP applications. In the CO component, order category 06 is defined as the category for managing the quality-related costs.

It is possible to manage quality-related costs in the CO component with or without the interaction of the Quality Management (QM) application component. If you do not require the Quality Management functions to manage your costs, you do not need to make any special settings in the QM component.
Process Flow
If you want to process quality-related costs in the QM component, the following steps are necessary:
QM order
The functions for inspection processing and quality notifications processing must be linked to the CO component. The QM component uses the QM order for this purpose. The appraisal and nonconformity costs are collected in QM orders. These orders are then processed by the CO component. The following types of QM orders are defined in the standard system:
You can define additional types of QM orders in QM Customizing to suit your requirements.
Confirming Quality-Related Costs in QM
In the QM component, appraisal costs and nonconformity costs are recorded in different ways:
In the logistics applications of the R/3 System, you cannot record appraisal costs directly in monetary terms. Instead, you record these costs on the basis of activity times. These are the times required to carry out an activity type for an inspection operation (for example, setup, machine or labor times). In the CO component, the confirmed activity times for a QM order are converted to actual costs on the basis of predefined prices.
In the QM component, you can only create a QM order. The system automatically assigns this QM order to the quality notification you are currently processing. The nonconformity costs are debited to the QM order in the CO component.
Overview of Quality-Related Costs