Unit 2: Product Cost Controlling by Period
Unit 2: Product Cost Controlling by Period
In the Product Cost by Period scenario, the product cost collector collects and analyzes the
costs. Production orders do not serve as cost objects. They are used for logistical processing
only. You can calculate the plan cost of the production order for analyzing issues, but you
cannot save the plan costs.
To ensure that the system collects costs of a manufacturing order on a product cost collector,
you must make the necessary settings for the order type of the manufacturing order in
Customizing for Product Cost by Order under Define Default Values for Order Type .
You must create a product cost collector manually before you start production. When you
create a manufacturing order, the system links the manufacturing order to the product cost
collector automatically.
If you do not create a product cost collector, the manufacturing order collects the costs. In
such a case, it is only possible to link the manufacturing order to the product cost collector
when no actual costs have been updated to the manufacturing order.
Note:
This course often uses the term manufacturing order. This is an umbrella term for
production order and process order.
1/2
2/4/2021 SAP e-book
Production Process
The production process assigns the production order to the product cost collector. The
system generates the production process automatically when you create the product cost
collector.
The system links product cost collectors to the production orders and to the production
versions in repetitive manufacturing, in the same way. The production orders linked to
product cost collectors also have the status PCC (Product Cost Collector).
2/2