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

SAP Term: initial cost split

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A cost component split for raw materials, which contains separate cost components for all procurement costs, such as: Purchase price Freight charges Insurance contributions Administration costs

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• Key Concepts: 
  Initial cost split is a feature of SAP's CO-PC Product Cost Controlling component. It allows users to divide the total cost of a product into different cost elements, such as material costs, labor costs, and overhead costs. This helps to provide a more accurate picture of the total cost of the product. 
  
  How to use it: 
  To use initial cost split, users must first enter the total cost of the product into the system. Then, they can assign different cost elements to each part of the total cost. This can be done manually or automatically, depending on the user's preference. Once all of the cost elements have been assigned, the system will calculate the total cost of the product. 
  
  Tips & Tricks: 
  When using initial cost split, it is important to ensure that all of the cost elements are accurately assigned. This will help to ensure that the total cost of the product is accurately calculated. Additionally, it is important to keep track of any changes that are made to the cost elements, as this could affect the total cost of the product. 
  
  Related Information: 
  Initial cost split is just one feature of SAP's CO-PC Product Cost Controlling component. Other features include material price variance analysis, overhead rate variance analysis, and activity-based costing. All of these features help to provide a more accurate picture of a product's total cost.