Product Costing fastfacts

Define calculation base
Define percentage overhead rates
Define costing sheets
Define overhead keys
Define cost component structure:
Define structure
Define cost component
Assign cost elements to cost components


Product costing is a tool for planning costs and establishing prices for materials. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. 

If costing is carried out on the basis of data in Production Planning (PP), then the cost estimate is a product cost estimate with a quantity structure (for example, BOM and routing). If costing is carried out on the basis of data that you enter manually, then the cost estimate is a product cost estimate without a quantity structure. 
Product costing belongs to both the Production Planning (PP) Module and the Controlling (CO) Module. 

Cost Object Controlling is used in the following areas:

§ Order Related Production.

§ Repetitive Manufacturing.

§ Process Manufacturing.

§ Sales Order Related Production.

§ Engineer to Order.

8 comments:

  1. so nice information about Product Costing fastfacts, SAP calculation is so much important thing nowadays for buildings and you article will help peoples alot to learn about that. Thank You for the post.

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  2. This post is much helpful for us. this is really very massive value to all the readers and it will be the only reason for the post to get popular with great authority. Product cost estimates are mandatory for any produced or purchased material valued at standard price. The cost estimates for produced materials should be based on most common way to produce the material, that is, the most common BOM and routing or the master receipt combination.
    SAP CO Costing Configuration & Product Cost Planning

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  3. Thanks for investing your time in providing such information on Product Costing. We have a similar site where we attempted to provide similar information on SAP Co.

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