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Cost Object for Product Development


We have a requirement to have a method for monitoring the expenditure incurred for product development.

The product development is for specific customer order.

We need to post material consumption, labour cost and other overheads for the development.

The product will have various production operations.

Finally the material output from the process is sold as scrap.

Whatever cost remained after deducting the revenue should be finally settled to the project.

Which methodology we should use other than Production Order ?

I am thinking about (a) Internal Order; (b) WBS Element.

I am not sure which one would give the best options.

Please guide me.


Yes, it should be P&L account.

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