What is realized loss in SAP CO-PC - Product Cost Controlling?

SAP Term: realized loss

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The usage of reserves for imminent loss by results analysis. A loss can be realized when actual costs are incurred or when revenue is received or both. Results analysis realizes a loss as the difference between: The calculated costs and the actual revenue The actual costs and the calculated revenue.

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• Key Concepts: 
  Realized loss is a term used in SAP's CO-PC Product Cost Controlling component. It is the difference between the actual cost of a product and the estimated cost of the same product. This difference is calculated when the actual cost of the product is higher than the estimated cost. 
  
  How to use it: 
  Realized loss can be used to identify areas where costs are higher than expected. This information can then be used to make adjustments to production processes or pricing strategies in order to reduce costs and increase profits. 
  
  Tips & Tricks: 
  It is important to track realized losses over time in order to identify trends and make informed decisions about production processes and pricing strategies. Additionally, it is important to compare realized losses with estimated costs in order to identify areas where costs are higher than expected. 
  
  Related Information: 
  Realized loss is related to other terms such as estimated cost, actual cost, and variance. It is also related to other components of SAP such as CO-PA Profitability Analysis and MM-IM Inventory Management.