What is simulation costing in SAP CO - Controlling?

SAP Term: simulation costing

• Component: CO

• Component Name: Controlling

• Description: Function for costing the changed single-level or multilevel assemblies within a product structure for new or modified products.

Smart SAP Assistant

• Key Concepts: 
  Simulation costing is a feature of SAP Controlling (CO) that allows users to simulate the cost of a product or service before it is actually produced. This feature allows users to analyze the cost of production and make decisions based on the results. Simulation costing can be used to compare different production scenarios and identify the most cost-effective option.
  
  How to use it: 
  To use simulation costing, users must first define the cost elements that will be used in the simulation. This includes defining the cost elements, their values, and any other relevant information. Once this is done, users can then enter the data into the simulation costing module and run the simulation. The results of the simulation will provide an estimate of the cost of production for each scenario.
  
  Tips & Tricks: 
  When using simulation costing, it is important to ensure that all relevant data is entered accurately. This will ensure that the results of the simulation are accurate and reliable. Additionally, it is important to consider all possible scenarios when running a simulation. This will help to identify any potential issues or areas for improvement before production begins.
  
  Related Information: 
  Simulation costing is closely related to other features of SAP Controlling such as product costing and profitability analysis. These features can be used in conjunction with simulation costing to gain a more comprehensive understanding of production costs and profitability. Additionally, simulation costing can be used in conjunction with other SAP modules such as Materials Management (MM) and Sales & Distribution (SD) to gain a better understanding of production costs and profitability across multiple departments.