What is automatic cost estimate in SAP PP - Production Planning and Control?

SAP Term: automatic cost estimate

• Component: PP

• Component Name: Production Planning and Control

• Description: A cost estimate calculated based on BOMs and routings.

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• Key Concepts: 
  Automatic cost estimate is a feature of SAP Production Planning and Control (PP) that allows users to quickly and accurately calculate the cost of a production order. It uses a combination of historical data, current material costs, and other factors to generate an estimate of the total cost of the order. 
  
  How to use it: 
  To use the automatic cost estimate feature, users must first enter the relevant data into the system. This includes the material costs, production order quantity, and any other relevant information. Once this data is entered, the system will generate an estimate of the total cost of the order. 
  
  Tips & Tricks: 
  It is important to ensure that all relevant data is entered accurately in order for the automatic cost estimate to be accurate. Additionally, it is important to regularly update the system with current material costs in order to ensure that estimates are as accurate as possible. 
  
  Related Information: 
  The automatic cost estimate feature can be used in conjunction with other features in SAP Production Planning and Control such as capacity planning and material requirements planning. Additionally, it can be used to compare different production orders and determine which one is most cost-effective.