CO PC

Product Cost Planning (CO-PC-PCP) is an area within Product Cost Controlling (CO-PC) where we can plan costs for materials without reference to orders, and set prices for materials and other cost accounting objects.

we can use Product Cost Planning to analyze the costs of our company’s products such as:

• Manufactured materials
• Services
• Other intangible goods

We can analyze costs to help provide answers to questions such as:

• What is the value added of a particular step in the production process?
• What proportion of the value added can be attributed to a particular organizational unit?
• What is the cost breakdown including primary costs or transfer prices?
• How high are the material, production, and overhead costs?
• How can production efficiency be improved?
• Can the product be supplied at a competitive price?

Product Cost Planning comprises the following components:

Cost Estimate with Quantity Structure	Costing materials based on a quantity structure in PP
Cost Estimate without Quantity Structure	Costing materials without a quantity structure in PP
Price Update	Transferring the results of material cost estimates to the material master
Reference and Simulation Costing	Planning new products and services using base planning objects
Easy Cost Planning and Execution Services	Rapid cost planning without master data within an ad hoc cost estimate

  

Implementation Considerations