What is cost component split in SAP CO-PC - Product Cost Controlling?

SAP Term: cost component split

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The splitting of costs into meaningful business units, so-called cost components. You can layer the costs of a material, a process or a service type. Examples of cost components of a cost component split In Product Cost Planning and in profitability analysis CO-PA: Material Internal activities External activities Overhead costs Other In Overhead Cost Controlling CO-OM: Energy Personnel Raw materials Other There are two types of cost component splits: Cost component split for the cost of goods manufactured not in CO-OM Primary cost component split By combining several cost elements into one cost element, the analysis of costs is easier for the following questions: In and CO-PA: Are the increased cost of goods manufactured mainly due to increased costs for the material or due to increased personnel costs? In CO-OM: How high is the material cost part of the price of a service type? In and CO-PA you can use the cost component split for the cost rollup.

Smart SAP Assistant

• Key Concepts: 
  Cost component split is a feature of SAP's CO-PC Product Cost Controlling module. It allows users to divide costs into different components, such as material costs, labor costs, and overhead costs. This allows for more accurate cost analysis and reporting. 
  
  How to use it: 
  To use cost component split, users must first define the cost components they want to use. This can be done in the CO-PC Product Cost Controlling module. Once the cost components have been defined, users can assign costs to each component. This can be done manually or automatically using the cost component split feature. 
  
  Tips & Tricks: 
  When using cost component split, it is important to ensure that all costs are accurately assigned to the correct components. This will ensure that the cost analysis and reporting are accurate and reliable. Additionally, it is important to regularly review and update the cost components to ensure that they are up-to-date with current market prices and trends. 
  
  Related Information: 
  For more information on cost component split, please refer to SAP's official documentation on CO-PC Product Cost Controlling. Additionally, there are many online resources available that provide tutorials and tips on how to use this feature effectively.