SAP Knowledge Base Article - Preview

3484848 - Understanding actual product cost calculation

Symptom

The Actual Product Cost is displayed in the Production Order window on the Summary tab. It represents the value of the received product quantity. The actual product cost is calculated as: Cost per component × Expected component quantity

The calculation of the expected component quantity is based on the value of completed products, which may be equal to or different from the value of the issued component quantity. If these two values differ, a production variance occurs. The expected component quantity is calculated as: Planned component quantity × (Actual product completed quantity / Planned product quantity)


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Environment

SAP Business One

Product

SAP Business One all versions ; SAP Business One, version for SAP HANA all versions

Keywords

Actual Production Cost, variance, valuation method, cost calculation, costing, manufacturing , KBA , sap note , logistics , SBO-PP-PRO , Production Order , SBO-PP-ISS , Issue for Production , SBO-PP-REC , Receipt from Production , How To

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