What is indirect cost in SAP AP-COS - FIN Costing?

SAP Term: indirect cost

• Component: AP-COS

• Component Name: FIN Costing

• Description: A cost that is related to a cost object but cannot be traced directly to it.

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• Key Concepts: 
  Indirect cost is a cost that is not directly associated with the production of a product or service. It is an overhead cost that is incurred in the production process, but cannot be directly attributed to any specific product or service. In SAP, indirect costs are managed through the Actual Costing/Material Ledger component of the AP-COS FIN Costing module. 
  
  How to use it: 
  The Actual Costing/Material Ledger component of SAP allows users to manage indirect costs by assigning them to specific products or services. This allows users to accurately track and report on the total cost of production, including indirect costs. The Material Ledger also allows users to track and report on the actual cost of materials used in production, as well as any other costs associated with production. 
  
  Tips & Tricks: 
  When assigning indirect costs to products or services, it is important to ensure that all costs are accurately tracked and reported. This will help ensure that the total cost of production is accurately reflected in the financial statements. Additionally, it is important to ensure that all indirect costs are properly allocated across all products and services in order to ensure accurate reporting. 
  
  Related Information: 
  For more information on managing indirect costs in SAP, please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are many online resources available that provide detailed information on how to use the Actual Costing/Material Ledger component of SAP.