What is lifecycle surcharge in SAP PLM-PLC - Product Lifecycle Costing?

SAP Term: lifecycle surcharge

• Component: PLM-PLC

• Component Name: Product Lifecycle Costing

• Description: An amount that is added or subtracted from a price. For example, a lifecycle surcharge may be calculated for an item to reflect an increase in the price of a raw material. Surcharges are applied during lifecycle calculation for a project.

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• Key Concepts: 
  Lifecycle surcharge is a feature of SAP Product Lifecycle Costing (PLM-PLC) that allows companies to calculate the cost of a product throughout its entire lifecycle. This includes the cost of production, maintenance, and disposal. It also takes into account any changes in the cost of materials or labor over time. 
  
  How to use it: 
  To use lifecycle surcharge, companies must first define the lifecycle stages of their product. This includes the initial production stage, any maintenance stages, and the final disposal stage. Once these stages are defined, companies can then enter the cost of each stage into the system. The system will then calculate the total cost of the product throughout its entire lifecycle. 
  
  Tips & Tricks: 
  When entering costs into the system, it is important to be as accurate as possible. This will ensure that the system is able to accurately calculate the total cost of the product throughout its entire lifecycle. Additionally, it is important to keep track of any changes in costs over time, as this will affect the total cost of the product. 
  
  Related Information: 
  SAP Product Lifecycle Costing (PLM-PLC) also includes features such as cost analysis and forecasting, which can help companies better understand their costs and plan for future expenses. Additionally, SAP PLM-PLC also includes features such as inventory management and supplier management, which can help companies better manage their supply chain and ensure that they have access to quality materials at competitive prices.