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

SAP Term: recognized cost

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The cost that is posted to Financial Accounting FI and matched with the corresponding recognized revenue in the same period. In Event-Based Revenue Recognition, the amount of recognized cost of sales is determined based on specific conditions and rules. Cost adjustment postings are possible, adjusting the recognized cost according to the applied rules.

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• Key Concepts: 
  Recognized cost is a term used in SAP Product Cost Controlling (CO-PC). It is the total cost of a product or service that has been accepted by the customer. This cost includes all direct and indirect costs associated with the production of the product or service. 
  
  How to use it: 
  In SAP Product Cost Controlling, recognized cost is used to determine the profitability of a product or service. It is calculated by adding up all direct and indirect costs associated with the production of the product or service. This includes raw materials, labor, overhead, and other costs. The recognized cost is then compared to the selling price of the product or service to determine its profitability. 
  
  Tips & Tricks: 
  When calculating recognized cost, it is important to include all direct and indirect costs associated with the production of the product or service. This includes raw materials, labor, overhead, and other costs. Additionally, it is important to ensure that all costs are accurately accounted for in order to get an accurate picture of profitability. 
  
  Related Information: 
  Recognized cost is closely related to other terms such as standard cost and actual cost. Standard cost is the estimated cost of a product or service based on historical data and current market conditions. Actual cost is the actual cost incurred during production of a product or service. Both standard and actual costs are used in conjunction with recognized cost to determine profitability.