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 Costs of External Processing/Procurement Locate this document in the navigation structure

Provided a non-stock component is defined as being relevant to costing, it is possible to determine costs for the component. The value of the component corresponds to the value of the purchase requisition and is determined via the price defined in the component.

Provided the control key of an operation specifies that it can be costed and that the operation is marked as being relevant to costing, it is possible to cost the operation.

The costing variant specifies how the externally processed operation is to be valuated. The costing variant refers to a valuation variant. The valuation variant specifies the price used to valuate the external activity.

The goods receipt of the material causes the production order to be debited with the actual costs of external processing or procurement, and the consumption accounts to be posted in financial accounting. However, it does not cause an increase in the quantity and value of the warehouse stock.

For more information on how costs are determined, see CO Cost Object Controlling .