What is cost in SAP SD - Sales and Distribution?

SAP Term: cost

• Component: SD

• Component Name: Sales and Distribution

• Description: A means of showing how costs are represented in a sales document. This lets you match costs to the prices determined in pricing for a sales document and perform contribution margin accounting. The condition type VPRS Internal price is available for this purpose. The condition type VPRS uses the valuation segment of the material master to determine either the standard price or the moving average price.

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• Key Concepts: 
  Cost in SAP Sales and Distribution (SD) is the total amount of money that a company spends to produce and deliver goods or services. It includes the cost of materials, labor, overhead, and other expenses associated with the production and delivery of goods or services. Cost is an important factor in pricing decisions and can be used to determine profitability. 
  
  How to use it: 
  In SAP SD, cost can be tracked and managed using the Cost Management module. This module allows users to track costs associated with each product or service, as well as analyze cost trends over time. The Cost Management module also allows users to set up cost centers and assign costs to them. This helps to ensure that costs are allocated correctly and that profitability can be accurately determined. 
  
  Tips & Tricks: 
  When tracking costs in SAP SD, it is important to ensure that all costs are accurately recorded. This includes both direct and indirect costs, such as overhead expenses. Additionally, it is important to ensure that all cost centers are properly set up and assigned to the correct products or services. This will help ensure that costs are allocated correctly and that profitability can be accurately determined. 
  
  Related Information: 
  For more information on cost management in SAP SD, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_SD/6.0/en-US