Costing with a quantity structure is a tool for planning costs and setting prices for materials without reference to orders. It is used to calculate thecost of goods manufactured and cost of goods sold for each product unit. You can use the results of material cost estimates with a quantity structure to valuate materials at standard prices.
Before a cost estimate with a quantity structure can be created, a bill of materials and routing (PP) or a master recipe (PP-PI) must exist for the material being costed. For more information, seeMaster Data for Costing with Quantity Structure.
Acost estimate with a quantity structure uses the PP or PP-PI master data to determine the materials and internal activities required to manufacture the product. The cost estimate is created automatically using this data.
You can use acosting run to process mass data.
There are a number of reports in the cost estimate itself and in theProduct Cost Controlling Information System that you can use to display and analyze the costing results together with the relevant quantity structure:
In addition to these PP-oriented displays of the costing results, there is a cost component split for each material that breaks the costs down intocost components:
See also:Purpose of Product Cost Planning Calculation of Cost of Goods Manufactured and Cost of Goods Sold