What is 'consumption equation' in SAP EPM-IM-FPL - EPM IM Flying Profit&Loss (Leopard)?

consumption equation - Overview

• Component: EPM-IM-FPL

• Component Name: EPM IM Flying Profit&Loss (Leopard)

• Description: A formula that connects the supply and consumption sides of a model by calculating an estimation of how heavily a given process consumes a resource. &Example& A consumption equation can express how many minutes are used to process and package an order.

consumption equation - Details

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  Key Concepts: 
  The consumption equation in SAP EPM-IM-FPL (Leopard) is a mathematical formula used to calculate the amount of resources consumed by a given activity. It takes into account the cost of materials, labor, and other overhead costs associated with the activity. The equation is used to determine the total cost of production and to identify areas where cost savings can be made. 
  
  How to use it: 
  The consumption equation in SAP EPM-IM-FPL (Leopard) is used to calculate the total cost of production for a given activity. It takes into account the cost of materials, labor, and other overhead costs associated with the activity. The equation is used to determine the total cost of production and to identify areas where cost savings can be made. 
  
  Tips & Tricks: 
  When using the consumption equation in SAP EPM-IM-FPL (Leopard), it is important to consider all costs associated with an activity, including materials, labor, and overhead costs. Additionally, it is important to consider any potential cost savings that could be made by optimizing processes or using more efficient methods. 
  
  Related Information: 
  The consumption equation in SAP EPM-IM-FPL (Leopard) is related to other equations used in SAP software such as the profit equation and the break-even equation. Additionally, it is related to concepts such as cost optimization and process optimization which are important for businesses looking to reduce costs