What is group production costs in SAP FI-LC - Consolidation?

SAP Term: group production costs

• Component: FI-LC

• Component Name: Consolidation

• Description: The cost incurred during production from the point of view of the group. Group production costs consist of the production costs of the individual consolidation units, taking into account production cost gains for example, transport costs or losses for example, product licenses.

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• Key Concepts: 
  Group production costs are costs that are incurred in the production of a product or service. These costs are typically associated with the production process, such as raw materials, labor, and overhead. In SAP FI-LC Consolidation, group production costs are used to track and analyze the cost of producing a product or service. 
  
  How to use it: 
  Group production costs can be tracked in SAP FI-LC Consolidation by creating cost centers and assigning them to the appropriate cost elements. Cost elements can then be assigned to the cost centers to track the cost of producing a product or service. The cost elements can be used to calculate the total cost of production for a given period of time. 
  
  Tips & Tricks: 
  When tracking group production costs in SAP FI-LC Consolidation, it is important to ensure that all cost elements are properly assigned to the appropriate cost centers. This will ensure that all costs associated with the production process are accurately tracked and reported. Additionally, it is important to regularly review and update the cost elements to ensure that they are up-to-date and accurate. 
  
  Related Information: 
  Group production costs can also be tracked in other SAP modules, such as Materials Management (MM) and Production Planning (PP). Additionally, group production costs can be used in conjunction with other financial reporting tools, such as Profit & Loss statements and Balance Sheets.