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in which scenario sales order costing is needed ?

Is it mandatory to have every time for a sales order to have sales order costing?

is it mandatory to have SO costing in MTO scenerios always?

in which scenerio SO costing is not applicable in MTO scenerio ?

Former Member
replied

Dear ,

POC is a Cost object in Product Cost by Period that collects the periodic actual costs incurred in the production of a materia.

Product cost collectors are independent of the production type. This means that you can collect actual costs on product cost collectors in the following production environments:

In order-related production (that is, when you are using production orders) when you want to analyze the costs by period rather than by lot

In process manufacturing (that is, when you are using process orders) when you want to analyze the costs by period rather than by lot

Repetitive manufacturing : In repetitive manufacturing you always use product cost collectors as cost objects.

Few important points from Forum Experts

u2022 Object in cost accounting used in Repetitive Manufacturing.

u2022 A separate product cost collector can be created for each production version or material. The collected costs are settled to inventory at the end of the period.

u2022 The functions performed for product cost collector during the period end closing process include :

u2022 Work in process (WIP) caculation

u2022 Variance calculation

u2022 Settlement

u2022 In Repetitive Manufacturing, all costs attributed to the production of a material are collected on a product cost collector and settled periodically (period-based Controlling).

u2022 The product cost collector is settled periodically according to the posting period (for example monthly) .

u2022 For a material , product cost collector is made for each version

u2022 The actual cost collected can be viewed through product cost collector

you cannot use product cost collectorsfor the following:

- Production orders or process orders that are manufactured for a sales order stock or project stock

- Production orders or process orders that are part of a collective order

- Joint production environments

Hope this will give you an idea .

Regards

JH

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