What is inventory costing in SAP CO-PC - Product Cost Controlling?

SAP Term: inventory costing

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A costing procedure that determines how the materials in inventory are valued in the balance sheet.

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• Key Concepts: 
  Inventory costing is a component of SAP's CO-PC Product Cost Controlling module. It is used to calculate the cost of goods sold (COGS) and the cost of goods manufactured (COGM). It also helps to determine the cost of inventory items, such as raw materials, work in progress, and finished goods. 
  
  How to use it: 
  Inventory costing is used to calculate the cost of goods sold and the cost of goods manufactured. It can be used to determine the cost of inventory items, such as raw materials, work in progress, and finished goods. The cost of each item is calculated based on its quantity, price, and other factors. 
  
  Tips & Tricks: 
  When using inventory costing, it is important to ensure that all costs are accurately accounted for. This includes costs associated with production, storage, and transportation. Additionally, it is important to keep track of any changes in prices or quantities over time. 
  
  Related Information: 
  Inventory costing is closely related to other components of SAP's CO-PC Product Cost Controlling module. These include material ledger, product costing, and profitability analysis. Additionally, inventory costing can be used in conjunction with other modules such as financial accounting and sales & distribution.