What is theoretical shrinkage in SAP IS-BEV - SAP Beverage?

SAP Term: theoretical shrinkage

• Component: IS-BEV

• Component Name: SAP Beverage

• Description: Calculation of goods lost based on either shrinkage rates, empirical values, or legal requirements.

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• Key Concepts: 
  Theoretical shrinkage is a term used in the SAP Beverage Industry Solution (IS-BEV) to refer to the amount of product that is expected to be lost during production. This includes losses due to evaporation, spillage, and other factors. It is calculated based on the amount of raw materials used and the expected yield of the finished product. 
  
  How to use it: 
  Theoretical shrinkage is used in the SAP Beverage Industry Solution (IS-BEV) to help calculate the cost of production. It is taken into account when calculating the cost of raw materials, as well as when calculating the expected yield of the finished product. This helps ensure that production costs are accurately estimated and that the expected yield is accurate. 
  
  Tips & Tricks: 
  When calculating theoretical shrinkage, it is important to take into account all potential sources of loss, such as evaporation, spillage, and other factors. Additionally, it is important to ensure that the expected yield of the finished product is accurate, as this will affect the cost of production. 
  
  Related Information: 
  Theoretical shrinkage is related to other terms used in the SAP Beverage Industry Solution (IS-BEV), such as actual shrinkage and yield variance. Actual shrinkage refers to the amount of product that is actually lost during production, while yield variance refers to the difference between the expected yield and actual yield of a product.