What is capitalized costs in SAP CO-PC - Product Cost Controlling?

SAP Term: capitalized costs

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The difference between the actual costs and the calculated costs for an order, calculated using results analysis. Capitalized costs are calculated if the actual costs exceed the calculated costs. With deficit orders, this figure is reduced to allow for the loss realized.

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• Key Concepts: 
  Capitalized costs are costs that are recorded as an asset on the balance sheet instead of being expensed in the period in which they are incurred. In SAP Product Cost Controlling (CO-PC), capitalized costs are used to track the costs associated with a product or service over its entire life cycle. This includes the cost of materials, labor, overhead, and other expenses associated with producing the product or service. 
  
  How to use it: 
  In SAP Product Cost Controlling (CO-PC), capitalized costs can be tracked by creating a cost object for each product or service. The cost object will contain all of the relevant information about the product or service, including its cost components and any capitalized costs associated with it. The cost object can then be used to track the total cost of the product or service over its life cycle. 
  
  Tips & Tricks: 
  When tracking capitalized costs in SAP Product Cost Controlling (CO-PC), it is important to ensure that all relevant information is included in the cost object. This includes not only the cost components but also any capitalized costs associated with the product or service. Additionally, it is important to ensure that all capitalized costs are properly accounted for in order to accurately track the total cost of the product or service over its life cycle. 
  
  Related Information: 
  For more information on capitalized costs and how they are used in SAP Product Cost Controlling (CO-PC), please refer to SAP Help documentation on Capitalized Costs (https://help.sap.com/viewer/product/SAP_ERP_Central_Component/6.0/en-US/f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a.html).