What is cost planning in SAP CO - Controlling?

SAP Term: cost planning

• Component: CO

• Component Name: Controlling

• Description: An instrument for drawing up all costs that are expected to be incurred during the course of an activity. These costs can be incurred with respect to: An order A cost center A project. There are the following basic types of planning: Rough planning also called "structure-oriented planning" - An estimate is made of the costs to be incurred for an order or for an element of a work breakdown structure element. Cost element planning Unit costing

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• Key Concepts: 
  Cost planning is a component of SAP Controlling (CO) that helps organizations plan and manage their costs. It enables users to create cost plans, analyze actual costs, and compare them to the planned costs. Cost planning also allows users to identify potential cost savings and take corrective action. 
  
  How to use it: 
  To use cost planning, users must first create a cost plan. This involves setting up a budget for each cost element and assigning it to an organizational unit. Once the cost plan is created, users can enter actual costs and compare them to the planned costs. They can also analyze the differences between the two and identify potential cost savings. 
  Tips & Tricks: 
  When creating a cost plan, it is important to consider the organizational structure of the company. This will help ensure that the cost plan is accurate and up-to-date. Additionally, it is important to regularly review the cost plan and make adjustments as needed. 
  Related Information: 
  Cost planning is closely related to other components of SAP Controlling such as profitability analysis, product costing, and activity-based costing. Additionally, it can be used in conjunction with other SAP modules such as Materials Management (MM) and Sales & Distribution (SD).