Sap co-pc pdf

Note that if you enter an activity rate instead of using the system to calculate a rate, you lose the opportunity to review actual vs. It is a best practice to plan activity quantities based on practical installed capacity which accounts for downtime. If you plan at full capacity, plan activity rates will be underestimated. Let's say we are using Product Costing to value our inventory in a cookie baking shop. This will help us value our cookies finished good , frosting semi-finished good , and baking items like eggs, milk, and sugar raw materials.

In order to calculate costs, we need to come up with rates for each activity, such as mixing baking items, oven baking, and cookie cooling. Master configuration and functionality for CO-PC. Browse the Book Browse the Book. Print edition. Print edition E-book Bundle. Walk through product cost controlling from end to end. Master integrated planning, product cost planning, cost object controlling, reporting, and more.

About the Book About the E-book pages, hardcover, 2 in. Reference book format 6. Printed black and white on 60 offset paper from sustainable sources. Smyth-sewn casebound for durability. Reader-friendly serif font Linotype Syntax 9. Values within the characteristics measure the profitability in which management uses to make strategic business decisions for an organization.

Using transaction KEA0 , take a look at a sample Operating Concern and review a key setting that you should understand — Type of Profitability Analysis. Your choices here are Costing-Based or Account-Based. You can choose one or the other or both simultaneously. Costing based uses costing based valuation fields to analyze, while account based uses cost and revenue elements that are reconciled with FI.

This may seem unclear at the moment, but as you work with and learn more about CO, it will begin to make sense. Below is an example of where you will find this setting. This is a very wide ranging topic, and in this SAP CO overview we will just define each to give you an idea of the available functionality. Cost Element Accounting — functionality that categorizes costs by type; costs can originate in FI primary or be CO independent secondary.

Cost Center Accounting — this functionality centers around accounting based on costs within a single entity of an organization. Activity Based Costing — functionality allowing costing based on assignment to very specific business processes.

Profitability Analysis — management accounting tool used to evaluate profitability of predefined market segments or business units from an external perspective. Profit Center Accounting — functionality centered on accounting of profit and losses of an organization by specific entity from an internal perspective. In this SAP CO Overview, we will take a look at a list of some basic master data elements some are referred to as cost collectors , give a brief definition of each, and an example of an integration point within other SAP modules.

Cost Center — this is a unit that represents a defined location of cost incurrence. An example of how this may integrate with other modules is the cost center field on a purchase order.

Profit Center — unit representing a specific area of responsibility within an organization used within profit center accounting.