What is value added in SAP CO-OM-ABC - Activity-Based Costing?

SAP Term: value added

• Component: CO-OM-ABC

• Component Name: Activity-Based Costing

• Description: Indicates whether a business process influences the production of a product or service. The degree of influence on the value added is represented by means of a ranking order.

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• Key Concepts: 
  Value added is a term used in Activity-Based Costing (ABC) within the Controlling (CO) module of SAP. It is a measure of the amount of value that a particular activity or process adds to a product or service. It is calculated by subtracting the cost of the inputs from the value of the outputs. 
  
  How to use it: 
  In SAP, value added can be calculated by using the Activity-Based Costing (ABC) component of the Controlling (CO) module. This component allows users to track and analyze costs associated with activities and processes, and to calculate value added for each activity or process. 
  
  Tips & Tricks: 
  When calculating value added in SAP, it is important to ensure that all costs associated with an activity or process are included in the calculation. This includes both direct and indirect costs, such as labor, materials, overhead, and other costs. 
  
  Related Information: 
  For more information on Activity-Based Costing (ABC) in SAP, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_ERP_6.0_EHP7/6.0/en-US/f3d8f9a2b7c14e8a9f3d5f2b7c14e8a9.html