1. SAP Glossary
  2. FIN Accounting
  3. other direct cost


What is other direct cost in SAP AP-ACC - FIN Accounting?


SAP Term: other direct cost

  • Component: AP-ACC

  • Component Name: FIN Accounting

  • Description: A direct cost that is incurred through an activity of normal business operations and that is not recorded in the production, sales, or purchasing ledgers.


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  • Key Concepts: 
    Other direct costs are expenses that are directly related to the production of goods or services. These costs are not included in the cost of goods sold, but are instead charged directly to the cost of the product or service. Examples of other direct costs include materials, labor, and overhead. 
    
    How to use it: 
    In SAP Accounting, other direct costs are recorded in the General Ledger (GL) account for Other Direct Costs. This account is used to track all expenses related to the production of goods or services that are not included in the cost of goods sold. The GL account for Other Direct Costs is used to track all expenses related to the production of goods or services that are not included in the cost of goods sold. 
    
    Tips & Tricks: 
    When recording other direct costs in SAP Accounting, it is important to ensure that all expenses related to the production of goods or services are accurately recorded in the GL account for Other Direct Costs. This will help ensure that all expenses related to the production of goods or services are accurately tracked and reported. 
    
    Related Information: 
    For more information on other direct costs and how they are recorded in SAP Accounting, please refer to SAP Help documentation on Other Direct Costs (https://help.sap.com/doc/saphelp_erp60_sp/6.0/en-US/f3/e2f9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d8f3d04b8e9a7d).
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