Preliminary Costing

You can calculate the

cost of goods manufactured or the cost of goods sold for the sales document items (inquiry, quotation, sales order) as follows:

Unit costing is a tool for planning costs in the CO module. In a unit cost estimate, you enter costing items
which are required for production of the material ordered.
Product costing calculates the cost of goods manufactured for the material assigned to the sales order item using the BOM and routing for this material. Sales orders can be created not only for materials that can be stocked but also for configurable materials. You define the material to be delivered in the SD module by selecting characteristic values for the different components. On the basis of the information on the configuration of the configured material, a cost estimate can be created that shows the cost of goods manufactured for this material.
Product costing can also calculate the costs for materials that do not have a BOM or routing, such as trading goods. For example, you can specify through the valuation variant that for materials with V price control (moving average price) a planned price from the costing view in the material master record is used.
You can also edit a product cost estimate with unit costing, for example to add special costs of sales to a sales order item.

For standard orders, the costing results are updated as cost elements and costing items on the sales order item and are available for analysis.

For orders and quotations, the costs are used as a basis for pricing but cannot be displayed in the Controlling module.

The costing results can be transferred to the pricing procedure as a condition value. This value can be

In this case you must ensure that condition type EK01 was specified the pricing procedure in the SD module.
In this case you must ensure that condition type EK02 was specified in the pricing procedure in the SD module.

This condition type is selected through the order type. It must have condition type "Q" (costing).

You can define overhead surcharges and thus the cost of goods sold for each sales order item on the basis of a costing sheet that is proposed through the requirements class in the sales order item. The overhead key in the costing sheet allows you to select a process template that uses process costs and cost drivers to allocate overhead (only applies if you are using Activity-Based Costing).