What is transfer costs in SAP CO-PC - Product Cost Controlling?

SAP Term: transfer costs

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The control costs and remaining variances summarized upwards in the cost object hierarchy. Variance calculation passes the transfer costs from cost object nodes at lower levels to the highest-level nodes of the cost object hierarchy to which one of the following objects is posted: Cost element Cost element or origin group Cost element or origin

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• Key Concepts: 
  Transfer costs are a type of cost incurred when goods are moved from one location to another. This type of cost is typically associated with the transportation of goods, such as shipping or freight costs. In SAP's CO-PC Product Cost Controlling component, transfer costs are tracked and managed in order to ensure that the cost of goods is accurately reflected in the company's financial statements. 
  
  How to use it: 
  In SAP's CO-PC Product Cost Controlling component, transfer costs can be tracked and managed by setting up a transfer cost element in the system. This element will be used to record the cost of transporting goods from one location to another. The transfer cost element can then be used to calculate the total cost of goods sold, which will be reflected in the company's financial statements. 
  
  Tips & Tricks: 
  When setting up a transfer cost element in SAP's CO-PC Product Cost Controlling component, it is important to ensure that all relevant information is included. This includes the type of transportation used, the distance traveled, and any additional fees associated with the transportation. Additionally, it is important to ensure that all transfer costs are accurately recorded in order to ensure that the total cost of goods sold is accurately reflected in the company's financial statements. 
  
  Related Information: 
  In addition to tracking and managing transfer costs in SAP's CO-PC Product Cost Controlling component, it is also possible to track and manage other types of costs associated with goods movement. These include storage costs, handling costs, and insurance costs. Additionally, it is possible to track and manage inventory levels in order to ensure that goods are available when needed.