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

SAP Term: preliminary costing

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A process that determines the planned costs for objects such as orders.

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• Key Concepts: 
  Preliminary costing is a feature of SAP's CO-PC Product Cost Controlling component. It is used to calculate the cost of a product or service before it is actually produced or delivered. This allows companies to make informed decisions about pricing and production costs before committing to a project. 
  
  How to use it: 
  Preliminary costing can be used to estimate the cost of a product or service before it is actually produced or delivered. This can be done by entering the expected costs for materials, labor, overhead, and other expenses into the system. The system will then calculate the estimated cost of the product or service based on these inputs. 
  
  Tips & Tricks: 
  When using preliminary costing, it is important to ensure that all expected costs are accurately entered into the system. This will ensure that the estimated cost is as accurate as possible. Additionally, it is important to consider any potential changes in costs that may occur during production or delivery of the product or service. 
  
  Related Information: 
  Preliminary costing is closely related to other features of SAP's CO-PC Product Cost Controlling component, such as actual costing and variance analysis. These features can be used to compare the estimated cost with the actual cost of a product or service after it has been produced or delivered.