What is cost of goods produced in SAP EPM-SCP - Supply Chain Performance Management?

SAP Term: cost of goods produced

• Component: EPM-SCP

• Component Name: Supply Chain Performance Management

• Description: The total costs of all goods produced, which includes costs of material, labor, and overhead, whether fixed or variable.

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• Key Concepts: 
  Cost of Goods Produced (COGP) is a term used in SAP EPM-SCP Supply Chain Performance Management to refer to the total cost of producing a product or service. This includes the cost of raw materials, labor, overhead, and other costs associated with production. COGP is an important metric for businesses to track in order to understand their profitability and make informed decisions about pricing and production.
  
  How to use it: 
  In SAP EPM-SCP Supply Chain Performance Management, COGP can be tracked by setting up a cost center for each production process. This cost center will track all costs associated with the production process, including raw materials, labor, overhead, and other costs. Once the cost center is set up, the COGP can be calculated by summing up all of the costs associated with the production process.
  
  Tips & Tricks: 
  When setting up a cost center for tracking COGP in SAP EPM-SCP Supply Chain Performance Management, it is important to ensure that all costs associated with production are included in the calculation. This includes not only direct costs such as raw materials and labor, but also indirect costs such as overhead and other expenses.
  
  Related Information: 
  In addition to tracking COGP in SAP EPM-SCP Supply Chain Performance Management, businesses can also use this software to track other important metrics such as inventory levels, customer satisfaction, and delivery times. By tracking these metrics, businesses can gain valuable insights into their operations and make informed decisions about pricing and production.