What is 'additive cost' in SAP CO-PC - Product Cost Controlling?
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Component: CO-PC
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Component Name: Product Cost Controlling
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Description: A material-based cost that you can enter manually in the form of a unit cost estimate and then add to an automatic cost estimate with quantity structure.
additive cost - Details
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Term: Additive Cost
Component: CO-PC Product Cost Controlling
Definition: Additive cost refers to additional costs that are added on top of the base production costs of a product. These costs are not directly tied to the standard cost of materials or labor but are included to reflect extra expenses such as special handling, packaging, or other supplementary activities that increase the total product cost.
How It’s Used: In SAP Product Cost Controlling, additive costs are used to capture and allocate extra expenses that arise during production but are not part of the standard cost estimate. For example, if a product requires special packaging or additional quality inspections, these costs are added as additive costs to ensure the final product cost reflects all incurred expenses. This helps in more accurate product costing, pricing decisions, and profitability analysis.
Important Configuration:
- Define additive cost elements in the system via T-code OKKN (Cost Element Accounting) to classify these costs properly.
- Maintain additive cost conditions in the costing variant using T-code CK11N or CK40N to include additive costs in cost estimates.
- Configure costing sheets or overhead keys to assign additive costs correctly during cost roll-up.
- Ensure that additive costs are included in the costing run by setting up the costing variant and costing type appropriately.
additive cost - Related SAP Terms
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