What is material cost estimate in SAP CO-PC - Product Cost Controlling?

SAP Term: material cost estimate

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A tool for planning costs and setting prices for materials. Calculates the cost of goods manufactured and the cost of goods sold for each product unit, and provides a basis for material valuation with standard costs for all application areas. Material cost estimates can be created automatically using the data in Production Planning cost estimate with quantity structure. Material cost estimates can also be created using data entered manually in Controlling cost estimate without quantity structure.

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• Key Concepts: 
  Material cost estimate is a component of SAP's CO-PC Product Cost Controlling module. It is used to calculate the cost of a material based on its components and the cost of production. It takes into account the cost of raw materials, labor, overhead, and other costs associated with producing the material. The estimate is used to determine the price of the material and to plan for future production costs. 
  
  How to use it: 
  The material cost estimate can be used to calculate the cost of a material by entering the components and their associated costs into the system. The system will then calculate the total cost of the material based on these inputs. The estimate can also be used to plan for future production costs by taking into account any changes in raw materials, labor, or overhead costs. 
  
  Tips & Tricks: 
  When using the material cost estimate, it is important to ensure that all components and their associated costs are accurately entered into the system. This will ensure that the estimate is accurate and that future production costs are accurately planned for. 
  
  Related Information: 
  The material cost estimate is part of SAP's CO-PC Product Cost Controlling module. Other components of this module include product costing, activity-based costing, and profitability analysis. These components can be used together to provide a comprehensive view of product costs and profitability.