Product Costing in SAP is a mature process that has been implemented and being used by several of SAP customers. The significant limitation with Product Costing was that it was biased significantly towards Standard Cost. Over years, Product Costing spawned a new feature in SAP to handle this limitation – Material Ledger. Product Costing along with Material Ledger allow customers to cost their material at standard cost during the month; and revalue products and all the transactions during the month at moving average – this revaluation is done at the end of the month.
The below presentation is a primer on Product Costing in SAP. It presents the basic tenets of Product Costing and the fundamental concepts on which the features are built. I have not cluttered it with Material Ledger. Material Ledger concepts are presented in a different blog and a different presentation.
Over the next few blogs, I will explain with examples and demonstrations how specific complex business scenarios can be handled in SAP Product Costing.
If you have any questions/ comments/ suggestions, please use the form below to let me know.
Presentation on Slideshare
Rajesh is an Associate member of Chartered Institute of Management Accountants (CIMA) London and a Fellow member of the Institute of Chartered Accountants of India. He has over 20 years experience in designing and implementing business and technology solutions in the areas of Finance and Management Accounting. His business process knowledge combined with his IT expertise enables him to provide his customers with best-in-class advice on business process / IT implementations.