What is planned product costs in SAP PP - Production Planning and Control?

SAP Term: planned product costs

• Component: PP

• Component Name: Production Planning and Control

• Description: The costs of manufacturing a product that are calculated in product costing. They are costs derived from the BOM or the routing.

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• Key Concepts: 
   Planned product costs are the estimated costs associated with producing a product. This includes the cost of raw materials, labor, overhead, and other expenses. The goal of planned product costs is to provide an accurate estimate of the total cost of producing a product. 
  
  How to use it: 
  In SAP Production Planning and Control (PP), planned product costs are used to calculate the total cost of producing a product. This includes the cost of raw materials, labor, overhead, and other expenses. The total cost is then used to determine the price of the product. 
  
  Tips & Tricks: 
  When calculating planned product costs in SAP PP, it is important to consider all potential costs associated with producing a product. This includes both direct and indirect costs. Additionally, it is important to consider any potential changes in the cost of raw materials or labor that could affect the total cost of production. 
  
  Related Information: 
  In addition to planned product costs, SAP PP also allows users to calculate actual product costs. Actual product costs are based on actual expenses incurred during production and can be used to compare against planned product costs. This comparison can help identify areas where production costs can be reduced or improved.