Product Cost Controlling’ (CO-PC) deals with estimating the costs to produce a product/service. CO-PC is divided into two major areas:
- Cost of materials
- Cost of processing
With CO-PC, you can calculate:
- Cost of goods manufactured (COGM)
- Cost of goods sold (COGS)
CO-PC is tightly integrated with Production Planning (PP) and Materials Management (MM), in addition to FI. The functionality helps to:
- Calculate Standard Costs of manufactured goods
- Calculate the Work-in-Progress (WIP)
- Calculate the Variances, at period-end
- Finalize settlement of product costs
Note that CO-PC deals only with production costs as it deals only with the production.
