What is target costs in SAP IS-EC-BOS - Customer Bill of Services?

SAP Term: target costs

• Component: IS-EC-BOS

• Component Name: Customer Bill of Services

• Description: Costs for a resource such as a material, internal service, external service or subcontracting which are involved in the realization of a project. The resource is created as a costing item of a service line. The target costs are calculated from the basic costs plus any other necessary additions and deductions.

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• Key Concepts: 
  Target costs are a type of cost that is used in the IS-EC-BOS Customer Bill of Services component of SAP. Target costs are used to set a budget for a particular service or product, and they are used to measure the performance of the service or product against the budget. 
  
  How to use it: 
  Target costs can be set up in SAP by creating a budget for a particular service or product. This budget can then be used to measure the performance of the service or product against the budget. The budget can also be adjusted as needed to ensure that the service or product is meeting its goals. 
  
  Tips & Tricks: 
  When setting up target costs in SAP, it is important to ensure that the budget is realistic and achievable. It is also important to monitor the performance of the service or product against the budget on a regular basis in order to ensure that it is meeting its goals. 
  
  Related Information: 
  For more information about target costs and how they are used in SAP, please refer to the SAP Help documentation. Additionally, there are many online resources available that provide more detailed information about target costs and how they are used in SAP.