Product Cost Controlling (CO-PC)

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

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

Each time a transaction is run that is relevant to valuation (such as a goods receipt, invoice receipt, or production order settlement), the system records the preliminary standard price and the variances against that price (such as price differences and exchange rate differences). At the end of the period, you can assign these variances to the material inventories and consumption of the previous period across multiple production levels. The resulting material valuation is based on the periodic actual values.