1. SAP Glossary
  2. CRO-Data Migration
  3. perpetual cost method


What is 'perpetual cost method' in SAP SRD-BC-TLS-DTM - CRO-Data Migration?


perpetual cost method - Overview

  • Component: SRD-BC-TLS-DTM

  • Component Name: CRO-Data Migration

  • Description: An indicator that defines how to valuate inventory. The method can be standard cost or moving average cost.


perpetual cost method - Details


  • Key Concepts: The perpetual cost method is a way of calculating the cost of goods sold (COGS) in SAP. It is based on the assumption that the cost of goods sold is equal to the cost of inventory at the beginning of the period plus any purchases made during the period, minus the inventory at the end of the period. This method is used in SAP's SRD-BC-TLS-DTM CRO-Data Migration component.
    How to use it: To use the perpetual cost method in SAP, you must first set up a COGS account in your chart of accounts. This account will be used to track all costs associated with inventory purchases and sales. Once this account is set up, you can enter all inventory purchases and sales into this account. The perpetual cost method will then calculate the COGS based on these entries.
    Tips & Tricks: When using the perpetual cost method, it is important to ensure that all inventory purchases and sales are accurately recorded in your COGS account. This will ensure that your COGS calculations are accurate and up-to-date. Additionally, it is important to regularly review your COGS calculations to ensure that they are accurate and up-to-date.
    Related Information: The perpetual cost method is just one of many methods used to calculate COGS in SAP. Other methods include FIFO (First In First Out), LIFO (Last In

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perpetual cost method - Related SAP Terms

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