What is threshold value in SAP CO-PC - Product Cost Controlling?

SAP Term: threshold value

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A rule basis and a threshold value constitute an exception rule.

Smart SAP Assistant

• Key Concepts: 
  Threshold value in SAP CO-PC Product Cost Controlling is a limit set for a certain cost element or cost center. It is used to control the costs of a particular cost element or cost center and to ensure that the costs do not exceed the set limit. 
  
  How to use it: 
  The threshold value can be set in the SAP system by going to the “Cost Element” or “Cost Center” tab in the CO-PC Product Cost Controlling module. Once there, select the cost element or cost center for which you want to set a threshold value and enter the desired limit. 
  
  Tips & Tricks: 
  It is important to remember that the threshold value should be set according to the budget allocated for a particular cost element or cost center. Setting too low of a threshold value may result in unnecessary costs, while setting too high of a threshold value may result in not being able to track costs accurately. 
  
  Related Information: 
  The threshold value can be used in conjunction with other features of SAP CO-PC Product Cost Controlling such as budgeting, forecasting, and reporting. It can also be used to monitor and control costs across multiple cost elements or cost centers.