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difference between Cost Object Controlling and Product Cost Planning?

During the COPC config, we got 2 sets of configuration. One is cost object controlling and one is product cost planning. What is the difference between these configuration?

What is the purpose of these 2 configuration?

Former Member
Former Member replied

HI Lucas...

here is about the three things U asked:

let us take an example:

Ur company is to buy spare parts of computer, assemble them with the help of ur employees and sell it finally.

You know, you planned that ur total spare parts cost you 15000/- by enquiring in the market , labor costs is 5000/- per pc (acc. to employee wages u give to the labor)

so, ur total computer cost is 20,000/- & u wanna sell it for 25,000/-

Here, <b>Preliminary costing</b> per pc = 20,000/-

But, unexpectedly, on the day u r bought parts, one part rate has gone up by 1,000/- &

U assembled the computer & sold to your customer.

ur computer cost has come to 21,000. (15,000/- + 1,000/- + 5,000/-)

This is called <b>Simultanous costing</b>

This costing is done in SAP using production order confirmation.

at the month end(called period end closing in SAP) ur employee unexpectedly demanded to give 7000/- per pc for the pcs that were sold last month. You need that employee & u paid him accordingly. This cost u hav come to know only at the period end.

so the <b>Final period costing</b> is 23,000/- (15,000/- + 1,000/- + 7,000/- )

This is done in SAP using production order settlement.

Do assign points if it is helpful

Regards,

chaitanya

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