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

SAP Term: cutoff period

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A period that divides the life cycle of a results analysis object into open and closed periods. Results analysis data from the start of results analysis up to and including the cutoff period remains frozen, protecting the data from being overwritten. Results analysis data for periods after the cutoff period can then be calculated.

Smart SAP Assistant

• Key Concepts: 
  The cutoff period in SAP CO-PC Product Cost Controlling is a period of time during which all costs and revenues are taken into account for the purpose of calculating the cost of a product. It is used to determine the cost of a product at a given point in time. The cutoff period can be set to any length of time, such as a month, quarter, or year. 
  
  How to use it: 
  The cutoff period is set in the SAP system by entering the start and end dates for the period. The system will then calculate the cost of the product based on all costs and revenues incurred during that period. The cutoff period can be changed at any time, allowing for more accurate cost calculations. 
  
  Tips & Tricks: 
  It is important to choose an appropriate cutoff period that accurately reflects the cost of the product. For example, if a product has a long production cycle, it may be necessary to use a longer cutoff period in order to accurately reflect all costs associated with the product. 
  
  Related Information: 
  The cutoff period is closely related to other concepts in SAP CO-PC Product Cost Controlling, such as cost centers and cost objects. It is also important to understand how different types of costs are calculated in order to accurately determine the cost of a product.