What is recognizable cost in SAP FI-RA - Revenue Accounting?

SAP Term: recognizable cost

• Component: FI-RA

• Component Name: Revenue Accounting

• Description: Cost that is matched against the corresponding recognizable revenue in the same period, regardless of whether it has been posted to FI.

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• Key Concepts: 
  Recognizable cost is a term used in SAP FI-RA Revenue Accounting to refer to the costs associated with a revenue-generating activity that can be identified and measured reliably. These costs are typically incurred in the production of goods or services and are necessary for the activity to be completed. Examples of recognizable costs include materials, labor, and overhead. 
  
  How to use it: 
  In SAP FI-RA Revenue Accounting, recognizable costs are used to calculate the total cost of a revenue-generating activity. This cost is then compared to the total revenue generated from the activity in order to determine the net profit or loss. Recognizable costs can also be used to calculate the cost of goods sold (COGS) for a given period. 
  
  Tips & Tricks: 
  It is important to accurately track and record all recognizable costs associated with a revenue-generating activity in order to ensure accurate financial reporting. Additionally, it is important to ensure that all costs are properly allocated across different activities in order to accurately reflect the true cost of each activity. 
  
  Related Information: 
  Recognizable costs are closely related to other accounting terms such as direct costs, indirect costs, and overhead costs. Direct costs are those that can be directly attributed to a specific activity, while indirect costs are those that cannot be directly attributed but still contribute to the overall cost of an activity. Overhead costs are those that are necessary for the operation of a business but not directly related to any specific activity.