What is 'material cost estimate' in SAP SRD-FIN-INV - FIN-Inventory?

material cost estimate - Overview

• Component: SRD-FIN-INV

• Component Name: FIN-Inventory

• Description: A calculation, in advance of production, of the cost that would be required to manufacture a material. Material cost estimates include the costs of components, services, and overhead.

material cost estimate - Details

• 
  Key Concepts: 
  Material cost estimate is a feature of SAP's Inventory Management component. It is used to calculate the cost of materials used in production, based on the quantity and price of the materials. The cost estimate can be used to determine the total cost of a production process, as well as to compare different production scenarios. 
  
  How to use it: 
  To use the material cost estimate feature, first enter the quantity and price of each material into the system. Then, select the “Material Cost Estimate” option from the menu. The system will then calculate the total cost of the materials used in production. 
  
  Tips & Tricks: 
  When entering material prices into the system, make sure to include any additional costs such as taxes or shipping fees. This will ensure that your material cost estimate is accurate. Additionally, it is important to regularly update your material prices in order to ensure that your estimates are up-to-date. 
  
  Related Information: 
  The material cost estimate feature can be used in conjunction with other features of SAP's Inventory Management component, such as inventory planning and inventory control. Additionally, it can be used to compare different production scenarios and determine which one is most cost-effective.