What is cutoff month in SAP CO-PC - Product Cost Controlling?

SAP Term: cutoff month

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The month of the cutoff period. The cutoff month is the last month for which results analysis data is calculated.

Smart SAP Assistant

• Key Concepts: 
  Cutoff month is a term used in SAP Product Cost Controlling (CO-PC). It is the month in which all costs and revenues are posted to the current period. This means that all costs and revenues incurred before the cutoff month are posted to the previous period, while all costs and revenues incurred after the cutoff month are posted to the current period. 
  
  How to use it: 
  The cutoff month is used to ensure that all costs and revenues are accurately allocated to the correct period. To set the cutoff month, go to the CO-PC menu in SAP and select “Set Cutoff Month”. Enter the desired cutoff month and click “Save”. 
  
  Tips & Tricks: 
  It is important to remember that the cutoff month should be set at least one month before the end of the current period. This will ensure that all costs and revenues are accurately allocated to the correct period. 
  
  Related Information: 
  For more information on setting the cutoff month in SAP Product Cost Controlling, please refer to SAP Help documentation.