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SAP S/4HANA Product Cost Planning Configuration and Master Data

Dive into SAP Product Cost Planning (CO-PC-PCP) and explore in depth how costs are assigned to materials. Walk through SAP S/4HANA configuration tasks and how these decisions impact unit costing and cost estimates with quantity structure. Determine how to...



  • Introduction
  • 1 Introduction to product cost planning
  • 2 Cost estimates without reference to materials
  • 3 Cost estimates without quantity structure
  • 4 Cost estimates with quantity structure
  • 5 Raw material cost estimates
  • 6 Costing manufactured materials
  • 7 Updating the material master
  • A The Author
  • B Disclaimer
  • C Endnotes

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Tom King






2.1 Purpose of cost estimates without reference to materials

Using the term “cost estimates without reference to materials” is a bit misleading. What is really intended is the ability to create a cost estimate without having to create a production material to go with it. The research phase of the product life cycle is a time of experimentation, and there is no compelling reason at this point to begin to create materials that will never make it into production. The desire at this stage is the ability to estimate the costs of creating a type of product. If the result is not deemed to be cost effective, then there is no need to move forward with creating a material. SAP provides alternative methods for generating cost estimates without requiring a production material.

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