What is price calculation in SAP CO - Controlling?

SAP Term: price calculation

• Component: CO

• Component Name: Controlling

• Description: The method used to calculate the prices of planned activities iteratively for combinations of cost center and activity type or for business processes, taking all activities performed for other cost centers or business processes into account. This can be done for both planned and actual data.

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• Key Concepts: 
  Price calculation in SAP CO Controlling is the process of determining the cost of a product or service based on the cost components associated with it. This includes the cost of materials, labor, overhead, and other factors. The price calculation process is used to determine the selling price of a product or service.
  
  How to use it: 
  In SAP CO Controlling, price calculation is done by entering the cost components associated with a product or service into the system. The system then calculates the total cost of the product or service based on these components. The calculated cost can then be used to determine the selling price of the product or service.
  
  Tips & Tricks: 
  When entering cost components into SAP CO Controlling for price calculation, it is important to ensure that all relevant costs are included in the calculation. This will ensure that the calculated price accurately reflects the true cost of the product or service.
  
  Related Information: 
  Price calculation in SAP CO Controlling is closely related to other processes such as budgeting and forecasting. By understanding how price calculation works, it is possible to better understand how these processes interact with each other and how they can be used to optimize business operations.