You use Product Cost Planning to:
Calculate the non-order-related cost of goods manufactured (COGM) and cost of goods sold (COGS) for each product unit
Establish how the costs are broken down for each product, and to calculate the value added for each step of the production process (cost rollup)
Optimize the cost of goods manufactured through comparison costing with the Product Cost Controlling Information System
Support make-or-buy decisions
Provide information for other SAP applications, such as:
Standards with which to assess production efficiency in Cost Object Controlling (CO-PC-OBJ)
Product Cost Planning enables you to answer questions such as:
Which is our most effiicient production line?
How much of the total cost is overhead?
How much have our costs increased, and why?
How much can we lower our unit costs by increasing output?
You can analyze the costing results using various reports:
Report | Contents |
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Cost Component Split | A view of the costs of a material cost estimate broken down into cost groups, such as material costs, production costs, and overhead costs. |
Itemization | Detailed information about the costs contained in a material cost estimate or base object cost estimate |
Itemization by Cost Element | Detailed information about the costs contained in a material cost estimate or base object cost estimate, sorted by cost element |
Costed Multilevel BOM | Quick overview of the BOM and costs of a material cost estimate or base object cost estimate in hierarchical form |
Partner Cost Component Split | Overview of the value added portions of organizational units (partners) in relation to the total costs of a material |
You can use Product Cost Controlling Information System (CO-PC-IS) to analyze the costing results. The following table gives you an overview of the various analysis options:
Information about Material Cost Estimates | |
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Information about Base Planning Objects | |
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Comparative reports |