SAP CO Product Costing-"By Sales Order Scenario" S/4 HANA

Description

Product Cost by Sales Order is an essential aspect of SAP CO. It helps organizations accurately track costs related to specific sales orders, ensuring profitability and accurate financial reporting.

Product Cost by Sales Order:

1. Concept and Explanation of MAKE TO ORDER:

   • Make to Order (MTO) involves producing products only after receiving a specific customer order.

   • This strategy offers personalized products but may lead to longer lead times.

2. Product Cost by Sales Order Concept:

   • This is about determining costs at the sales order level.

   • Instead of general product costing, costs are tracked per specific sales orders.

3. Valuated and Non-Valuated Concept:

   • Valuated: The stock is valuated at the sales order level, meaning it has a monetary value assigned.

   • Non-Valuated: The stock isn't assigned a monetary value at the sales order level but at a higher (like the plant) level.

4-6. Sales Order Costing Processes:

• Without Sales Order Controlling Object (Valuated): Here, costs are determined at the sales order level but without an order controlling object.

• With Sales Order Controlling Object (Valuated): Costs are determined at the sales order level using a controlling object.

• With Sales Order Controlling Object (Non-Valuated): Costs are tracked with a controlling object but stock isn't valuated at the sales order level.

7. Result Analysis Calculation of Sales Order and its Settlement:

   • Ensures that all costs and revenues from a sales order are correctly recognized in financial accounting, even if they occur in different periods.

Sections A through J lay out the steps and configurations needed to implement Product Cost by Sales Order in SAP, from setting up Costing Variants to testing various scenarios and finally obtaining relevant reports.

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