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

SAP Term: sales order costing

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A method of costing that values the items in a sales order. You can also cost the items in inquiries and quotations.

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• Key Concepts: 
  Sales order costing is a component of SAP's Product Cost Controlling (CO-PC) module. It is used to calculate the cost of a sales order, taking into account all the costs associated with producing and delivering the product or service. This includes direct costs such as materials, labor, and overhead, as well as indirect costs such as marketing and administrative expenses. The cost of a sales order is then used to determine the profitability of the order. 
  
  How to use it: 
  Sales order costing can be used to calculate the cost of a sales order by entering the relevant data into the system. This includes information about the product or service being sold, such as its price, quantity, and any discounts or taxes that may apply. The system will then calculate the total cost of the order based on this data. 
  
  Tips & Tricks: 
  When using sales order costing, it is important to ensure that all relevant data is entered accurately. This includes not only the product or service being sold but also any associated costs such as materials, labor, and overhead. It is also important to keep track of any discounts or taxes that may apply to the order. 
  
  Related Information: 
  Sales order costing is closely related to other components of SAP's Product Cost Controlling module, such as material costing and overhead costing. It is also related to other modules such as Sales and Distribution (SD) and Financial Accounting (FI). Understanding how these modules interact can help you get the most out of your sales order costing process.