Monday, 14 May 2012

What is ' Product Cost Controlling '? | SAP-FICO

Product Cost Controlling (CO-PC) deals with estimating of what will cost to produce a product of service.  
CO-PC is divided into two major areas:
    i.    Cost of materials
    ii.    Cost of processing
With CO-PC, you will be able to calculate:
    a.   Cost of goods manufactured (COGM)
    b.   Cost of goods sold (COGS)
CO-PC is tightly integrated with Production Planning (PP) and Materials Management (MM), Besides FI. 
The functionality helps to:
    •    Calculate Standard Costs of manufactured goods
    •    Calculate the Work-in-Progress (WIP)
    •    Calculate the Variances, at period-end
    •   Settlement of product costs
Note that CO-PC deals only with the production costs.

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