What is quantity-based valuation in SAP IS-A-PPC - Production Backflush?

SAP Term: quantity-based valuation

• Component: IS-A-PPC

• Component Name: Production Backflush

• Description: Scenario in sales-order-based mass production and make-to-stock environments in which product cost collectors in the Discrete Industries system are debited and credited with postings from the APO system through an interface. Management of reporting points differs significantly from that in the standard SAP System.

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• Key Concepts: 
  Quantity-based valuation is a feature of the IS-A-PPC Production Backflush component of SAP. It allows for the automatic valuation of goods and services based on the quantity of the item being produced. This feature helps to streamline the production process and reduce manual labor costs associated with manually entering data into the system. 
  
  How to use it: 
  To use quantity-based valuation, you must first set up the system to recognize the item being produced and its associated quantity. Once this is done, you can then enter the quantity of the item into the system and it will automatically calculate its value. This value can then be used to determine the cost of production or other related expenses. 
  
  Tips & Tricks: 
  When setting up quantity-based valuation, it is important to ensure that all items are accurately entered into the system. This will help to ensure that the correct values are calculated and that any discrepancies are quickly identified and corrected. Additionally, it is important to regularly review and update the system to ensure that all items are accurately valued. 
  
  Related Information: 
  Quantity-based valuation is just one of many features available in SAP’s IS-A-PPC Production Backflush component. Other features include material requirements planning (MRP), inventory management, and production scheduling. Additionally, SAP offers a variety of other components that can be used to further streamline production processes and reduce costs.