What is cost-reducing revenue in SAP CO-OM - Overhead Cost Controlling?

SAP Term: cost-reducing revenue

• Component: CO-OM

• Component Name: Overhead Cost Controlling

• Description: Revenue that reduces costs. Cost-reducing revenues are assigned to the cost element category for primary costs. Cost-reducing revenues are not treated as sales revenues because they are not generated by the company's main business. For example, if a company sublets part of an office it is renting, the rent it receives on the sublet space reduces its effective rental cost. Other examples include interest income and gains from foreign exchange.

Smart SAP Assistant

• Key Concepts: 
  Cost-reducing revenue is a term used in SAP's CO-OM Overhead Cost Controlling module. It is a type of revenue that reduces the cost of goods sold or services provided. This type of revenue is typically generated from activities such as cost savings, cost avoidance, or cost reductions. 
  
  How to use it: 
  In SAP's CO-OM Overhead Cost Controlling module, cost-reducing revenue can be used to offset the costs associated with goods sold or services provided. This type of revenue can be tracked and monitored in the system to ensure that it is being used effectively. 
  
  Tips & Tricks: 
  When tracking and monitoring cost-reducing revenue in SAP's CO-OM Overhead Cost Controlling module, it is important to ensure that all relevant information is included. This includes the source of the revenue, the amount of the revenue, and any other relevant details. 
  
  Related Information: 
  For more information on SAP's CO-OM Overhead Cost Controlling module and how to use cost-reducing revenue, please refer to the official SAP documentation.