Product Cost Planning

Product Cost Planning (CO-PC-PCP) is an area within Product Cost Controlling (CO-PC) where you can
plan costs for materials without reference to orders, and set prices for materials and other cost accounting
objects.
You can use Product Cost Planning to analyze your product costs, such as for:
Manufactured materials
Services
Analyzing product costs helps 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 are the material, production, and overhead costs?
How can production efficiency be improved?
Can the product be sold at a competitive price?

Product Cost Planning

Product Cost Planning (CO-PC-PCP) is an area within Product Cost Controlling (CO-PC) where you can
plan costs for materials without reference to orders, and set prices for materials and other cost accounting
objects.
You can use Product Cost Planning to analyze your product costs, such as for:
Manufactured materials
Services
Analyzing product costs helps provide answers to questions such as:
What is the value added of a particular step in the production
Components of Product Cost Planning
Product Cost Planning comprises the following components:
Material Cost Estimate With Quantity Structure
Costing materials based on a quantity structure in Production Planning
Material Cost Estimate Without Quantity Structure
Costing materials without a quantity structure in Production Planning
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
In your organizational structure, each company code needs to be assigned to a controlling area.
Materials are always valued at valuation area level, while costing must be performed at plant
level. You therefore need to define the plant as the valuation level in Customizing under
Enterprise Structure Definition Logistics - General Define valuation level . This creates a
valuation area with the same name for each plant. All costing data is then stored with reference
to a plant.

Integration
Product Cost Planning accesses master data in other components, such as BOMs, routings, and work
centers in Production Planning, and cost centers, activity types, and business processes in Overhead
Cost Controlling. Costing data within Product Cost Planning can also be made available to other
applications. For example, you can update the standard price in the material master with the results of
cost estimates, and valuate materials using this new standard price.
For more information, see Information for Other SAP Applications.
Caution

Because of this high level of data integration, SAP recommends that you make a thorough check before
going live to ensure that the correct data is accessed for the quantity and value structures, to prevent
incorrect costing results.
End of the caution.
For more information about integration, see Origin of Costing Data.

Features
Functions
You can access the functions of Product Cost Planning from either the Accounting menu or the Logistics
menu:

Accounting Controlling Product Cost Controlling Product Cost Planning

Logistics Production Product Cost Planning

Logistics Production - Process Product Cost Planning

The following table gives you an overview of the menu and functions of Product Cost Planning:
Menu Option

Function

Cost Estimate

Material Costing Costing Run Costing Run with BOM and

Edit Costing Run

routing

Used to process mass data, and is created

automatically with Production Planning data
(product cost estimate)

Material Costing Cost

Estimate with Quantity Structure

Cost Estimate with Quantity

Created automatically with Production

Structure (with BOM and routing

Planning data (product cost estimate)

or master recipe)
Material Costing Cost

Additive Costs

Created using data you enter manually (unit

costing)

Estimate with Quantity Structure

Additive Costs
Material Cost Estimate Without

Created using data you enter manually (unit

Quantity Structure

costing) or transfer from a non-SAP system

Reference and Simulation

Reference and Simulation

Created using data you enter manually (unit

Costing

Costing

costing)

Ad Hoc Cost Estimate

Created using a planning form (costing model)

Material Costing Cost

Estimate Without Quantity
Structure

Easy Cost Planning &

that can access the data in the SAP system

Execution Services Edit Ad Hoc

Cost Estimate
Menu Option

Function

Material Costing Price Update

Price Update

Material Costing Master Data for Mixed Cost

Definition of procurement alternatives and mixing ratios for

Estimate
Easy Cost Planning & Execution Services Edit

Mixed Costing
Define planning forms for Easy Cost Planning

Menu Option

Function

Cost Estimate

Material Costing Costing Run Costing Run with BOM and

Used to process mass data, and is created

routing

Edit Costing Run

automatically with Production Planning data

(product cost estimate)

Costing Model
Menu Option

Functions Available

Information

Costing results

Examples

System

Lists of material cost estimates and base object

cost estimates

Environment

Detailed reports

Comparison reports

Additional functions in Product

Archive and delete costing data

Cost Planning

Check costing variant

You use different costing methods in Product Cost Planning depending on the availability of data in
Production Planning (PP and PP-PI) and on the type of object you want to cost.

Automatic costing (also known as product costing)

The quantity structure (BOMs and routings or master recipe) for the material is automatically
determined and valuated using data from Production Planning (PP or PP-PI).
For more information, see Cost Estimate with Quantity Structure: Process Flow.

 Unit costing
This cost estimate calculates the costs for the following objects without accessing BOMs and
routings in Production Planning:
o Materials (for example, additive costs for a material cost estimate with quantity structure,
material cost estimate without quantity structure)
o Base planning objects
With this costing method, you enter the costing items manually. You can access existing SAP
system data such as materials, business processes, cost centers, and activity types for this
purpose.
For more information, see Unit Costing.
Multilevel unit costing
This cost estimate calculates the costs for the following objects without accessing BOMs and
routings in Production Planning:
o Materials (material cost estimate without quantity structure)
o Base planning objects
With this costing method, you enter the costing items manually. You can access existing SAP
system data such as materials, business processes, cost centers, and activity types for this
purpose. You can also display the costing structure hierarchically and, using a worklist, access
frequently used data.
For more information, see Multilevel Unit Costing.
Configuration Settings
You make the configuration settings for Product Cost Planning in Customizing for Product Cost
Controlling.
For more information, see Preparation for Costing: Customizing and the Implementation Guide (IMG)
for Product Cost Controlling.

More Information
Purpose of Product Cost Planning
Costing Sequence