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

SAP Term: material explosion

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A function in unit costing that replaces items linked to materials with their BOM items.

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• Key Concepts: 
  Material explosion is a feature of SAP's CO-PC Product Cost Controlling component. It is used to calculate the cost of a product based on the cost of its components. It works by breaking down the components of a product into their individual parts and then calculating the cost of each part. This allows for an accurate calculation of the total cost of the product. 
  
  How to use it: 
  To use material explosion, first enter the components of the product into SAP's CO-PC Product Cost Controlling component. Then, enter the cost of each component and select the “Material Explosion” option. This will generate a report that shows the cost of each component and the total cost of the product. 
  
  Tips & Tricks: 
  When using material explosion, it is important to ensure that all components are accurately entered into SAP's CO-PC Product Cost Controlling component. This will ensure that the report generated is accurate and up-to-date. Additionally, it is important to keep track of any changes in costs for components as this will affect the total cost of the product. 
  
  Related Information: 
  Material explosion is just one feature of SAP's CO-PC Product Cost Controlling component. Other features include cost center accounting, activity-based costing, and profitability analysis. Additionally, there are other tools available for calculating product costs such as ABC Analysis and Activity Based Costing (ABC).