What is quantity-based cost distribution in SAP FIN-BAC-INV - Inventory Accounting?

SAP Term: quantity-based cost distribution

• Component: FIN-BAC-INV

• Component Name: Inventory Accounting

• Description: Distribution method for joint products and subcontracting. Costs such as material withdrawals, internal activities, or overhead are distributed to the receivers based on the quantity.

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• Key Concepts: 
  Quantity-based cost distribution is a feature of SAP Inventory Accounting (FIN-BAC-INV) that allows for the distribution of costs based on the quantity of goods produced or sold. This feature allows for a more accurate cost distribution than traditional methods, such as average cost or standard cost. 
  
  How to use it: 
  To use quantity-based cost distribution, you must first set up the system to track the quantity of goods produced or sold. This can be done by setting up a production order or sales order in SAP. Once the system is set up, you can then use the quantity-based cost distribution feature to distribute costs based on the quantity of goods produced or sold. 
  
  Tips & Tricks: 
  When using quantity-based cost distribution, it is important to ensure that all costs are accurately tracked and allocated. This includes both direct and indirect costs, such as labor and overhead. Additionally, it is important to ensure that all costs are allocated in a timely manner so that they are accurately reflected in the financial statements. 
  
  Related Information: 
  For more information on quantity-based cost distribution, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed information on how to use this feature in SAP.