What is value structure in SAP PP - Production Planning and Control?

SAP Term: value structure

• Component: PP

• Component Name: Production Planning and Control

• Description: The value structure is the basis for calculating costs according to values. The value structure for product costing and preliminary costing for a production order are made up of the material master, the activity type from cost center planning, the costing sheet for the application of overhead, and the purchasing info record.

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• Key Concepts: 
  Value structure is a component of SAP Production Planning and Control (PP) that allows users to define and manage the cost of production. It is used to calculate the cost of production based on the materials used, labor costs, overhead costs, and other factors. The value structure also allows users to track the cost of production over time. 
  
  How to use it: 
  To use the value structure in SAP PP, users must first define the cost elements that will be used in the calculation. This includes materials, labor, overhead, and other costs. Once these elements are defined, users can then assign them to the value structure. The value structure will then calculate the total cost of production based on these elements. 
  
  Tips & Tricks: 
  When setting up a value structure in SAP PP, it is important to ensure that all cost elements are accurately defined and assigned. This will ensure that the cost of production is accurately calculated. Additionally, it is important to regularly review and update the value structure as needed to ensure that it remains accurate over time. 
  
  Related Information: 
  For more information on using the value structure in SAP PP, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_ERP_Central_Component/6.0/en-US/f3d8f9a7c2b04d8a9f3e7c2b0e8a4d1e.html