What is cost component split for cost of goods manufactured in SAP CO - Controlling?

SAP Term: cost component split for cost of goods manufactured

• Component: CO

• Component Name: Controlling

• Description: A structure that divides the costs for a material into different cost components. Unlike a primary cost component split, a cost component split for cost of goods manufactured shows internal activities using secondary cost elements. It is used to create a standard price for the material and to supply Profitability Analysis with the cost of goods manufactured, or the cost of goods sold.

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• Key Concepts: 
  Cost component split for cost of goods manufactured is a feature of SAP Controlling (CO) that allows users to analyze the cost of goods manufactured in detail. It enables users to break down the cost of goods manufactured into its individual components, such as direct materials, direct labor, and overhead costs. This allows users to gain a better understanding of the cost structure of their products and make more informed decisions about pricing and production. 
  
  How to use it: 
  To use the cost component split for cost of goods manufactured feature in SAP Controlling, users must first set up a cost component structure in the system. This structure defines the individual components that will be used to analyze the cost of goods manufactured. Once this is done, users can then assign costs to each component and view the breakdown of costs in a graphical format. 
  
  Tips & Tricks: 
  When setting up the cost component structure, it is important to ensure that all relevant components are included. This will ensure that all costs associated with the production process are accounted for and can be analyzed accurately. Additionally, it is important to regularly review and update the cost component structure as needed to ensure that it remains accurate and up-to-date. 
  
  Related Information: 
  For more information on using the cost component split for cost of goods manufactured feature in SAP Controlling, please refer to the official SAP documentation or contact your local SAP support team.