| Lost password
Espresso Tutorials
eBooks for SAP Software


eBook Library
 Login


How does SAP determine costs?
 1
14.12.08 09:22
TanyaDuncan 

Moderator

How does SAP determine costs?

How does SAP determine costs from material master through production orders, and settlement (including WIP settlement) including material, labor and overhead costs?
The cost flow diagram below can help answer this question. A materialís standard cost or moving average price is used for each material movement to an order. The cost component split contains the material, labor, and overhead portions based on the BOM, Routing, and Costing sheet. When a raw material is backflushed or issued to an order, it takes the materialís standard cost or moving average price. For semi-finished or finished goods, the cost of the material is made up on the backflushes/issues of component materials to the order (quantity issued times standard cost or MAP), routing activity confirmations (quantity times activity rate), and the costing sheet represents the overhead applied.

18.04.19 09:56
Cyberops 
Re: How does SAP determine costs?

Very nice content so useful.
Best regards
Cyberops
(Cyberops provides best ethical hacking training and VAPT in India.)

 1
provides   training   backflushes   overhead   quantity   represents   settlement   determine   including   materials   production   standard   component   backflushed   semi-finished   materialís   material   confirmations   activity   Cyberops