Moving Average Price

sales document item (CO-PC)

Configurable Product
Product (for example, a PC), of which different variants are available.
For example, a PC can have different types of monitors or keyboards, or different sizes of memory.
When a customer selects a configurable product in the web catalog and/or shopping basket, the
available options for the product are displayed automatically. The customer can select the options that
the customer wants. The customer only sees the options that are compatible with the options already
selected. The price is always displayed, and is recalculated whenever the customer selects an option
that affects the price.

Valuated Sales Order Stocks

You use a valuated sales order stock if you want the goods movements to have corresponding
postings in Financial Accounting (FI).
A sales order stock is assigned exclusively to a particular sales order and sales order item and cannot
be used for other sales orders or sales order items.
You can use the valuated sales order stock in:
-Complex make-to-order production
-Mass production environments using sales orders

Independent/ dependent requirement

An independent requirement is a demand that is not based on the demand for another item while a
dependent requirement is based on the demand for another item. Hence, it can be concluded that the
demand for the 6 chairs and the table is based on the demand for the table. Thus, you can forecast an
independent demand while dependent demands are calculated based on the independent demand
item.

individual requirements inventory (CO-PC)

Product Cost Controlling (CO-PC)
An inventory of materials to be manufactured (or that have been manufactured) in a sales-order
production environment or in an engineer-to-order environment.
Individual requirements materials are manufactured for the sales order stock or project stock.
They are not placed into the make-to-stock inventory.
In contrast to individual requirements materials, collective requirements materials are carried in the
make-to-stock inventory. Whether a material is an individual requirements material or a collective
requirements material is specified in the material master.

collective requirements inventory (CO-PC)

Product Cost Controlling (CO-PC)
An inventory to be manufactured (or that has been manufactured) in a make-to-stock production
environment.
Collective requirements materials are placed into the make-to-stock inventory.
In contrast to collective requirements materials, individual requirements materials are carried in the
sales order stock or project stock. Whether a material is an individual requirements material or a
collective requirements material is specified in the material master.

sales order costing (CO-PC)

Product Cost Controlling (CO-PC)
A method of costing that valuates the items in a sales order.
You can also cost the items in inquiries and quotations.

Single Level Planning

Single-item planning only involves the planning of one individual material. Single-level means that the
BOM is not exploded and that, therefore, only the level directly below the material is planned

Assemble to order
Assemble to order refers to a production method in which the customer must first place an order
before the item is produced. The components of the products are already manufactured, which makes
this process different from the make to order method, where everything is manufactured after receipt
of an order. Businesses often stock the inventory required to make the product, and as soon as an
order is placed, they often have everything they need to give the customer what has been requested.
It also makes it easier to customize orders for customers, because the products are not pre-made. The

chief benefit of this production method is that customers can quickly receive products customized to
meet their needs.
http://www.wisegeek.com/what-is-assemble-to-order.htm

actual costs (CO-PC)

Product Cost Controlling (CO-PC)
A cost consisting of the total debits made to a cost object.

complex make-to-order production (CO-PC)

Product Cost Controlling (CO-PC)
A production in which a product is manufactured for a customer with a special process used only
for that product.
The product, which is manufactured only once in this form, is represented by the order BOM of the
sales order item.
In complex make-to-order production, you can use the functions of Product Cost by Sales Order. The
sales order item is the cost object.
process costs (CO)
Controlling (CO)
The costs incurred for business processes.
Calculated by multiplying the price of a business process by the quantity performed.
Process costing is a method of costing used mainly in manufacturing where
units are continuously mass-produced through one or more processes.
Examples of this include the manufacture of erasers, chemicals or processed
food.
In process costing it is the process that is costed (unlike job costing where
each job is costed separately). The method used is to take the total cost of the
process and average it over the units of production.
Cost per unit = Cost of inputs/Expected output in units

sales document type (SD)

Sales and Distribution (SD)
An indicator for controlling the sales documents defined in the system that allows the system to
process different business transactions in different ways.
The standard version of the SAP System includes pre-defined sales document types or you can also
define your own. Three examples of sales document types are:
Inquiry (IN)
Quotation (QT)
Standard order (OR)

Sales document types are grouped into processing groups (sales document categories).
condition value (SD)
Sales and Distribution (SD)
The value, resulting from pricing, for a condition, total, or sub-total in a document.

valuation variant (CO-PC)

Product Cost Controlling (CO-PC)
A key, in Product Cost Planning,
that determines the prices that the SAP System selects to valuate the quantity structure of a material
cost estimate or order, or to valuate the costing items of a unit cost estimate.
The valuation variant controls how the materials and activities in the cost estimate are valuated. The
valuation variant specifies the following parameters:
The price in the material master (such as the standard price) or in the purchasing info record
(such as the net order price) that is used to cost a material in the BOM
The planned or actual price that is used to valuate the internal activities
The version in Cost Center Accounting that is used to valuate internal activities
The costing sheet that is used to calculate overhead
Whether, and to what extent, a BOM item or an operation in the routing is relevant to costing
The different valuation strategies for materials, internal activities, external activities, and
subcontracting are stored as strategy sequences.
A global valuation variant is valid for all plants. A local valuation variant is valid only for a specific
plant. You define valuation variants in Customizing for Product Cost Controlling.
In Cost Object Controlling, there is a valuation variant that can be used for the valuation of work in
process at target costs and for the valuation of scrap variances.
In this valuation variant, you specify the cost estimate that is used to calculate the target costs.

Settlement
Settlement transfers the actual costs assigned to the order to one or more receivers (normally the
material being manufactured).
The variances between the original inventory valuation and the actual costs are transferred to
Financial Accounting, Profit Center Accounting and Profitability Analysis.
When you settle, the work in process is transferred to Financial Accounting and Profit Center
Accounting. Work in process is always settled by period

control cost (CO)

Controlling (CO)
The costs that are compared with the target costs when the variances are calculated.
In Overhead Cost Controlling (CO-OM), the control costs are always the actual costs.
In Cost Object Controlling (CO-PC-OBJ), the control costs are either the actual costs less the work in
progress and scrap, or the cost calculated in the preliminary cost estimate for the order, depending on
the target cost version.

Target Cost:
Product Cost Controlling (CO-PC)
Costs expected to be incurred when a given quantity is produced.
In Cost Object Controlling, the target costs are calculated on the basis of the planned values of
a service unit (such as the planned cost of a production order) and the control quantities (such
as the yield delivered to stock).
Target costs can be used for purposes such as the following:
To determine variances
To valuate work in process
To valuate unplanned scrap

individual requirements inventory (CO-PC)

Product Cost Controlling (CO-PC)
An inventory of materials to be manufactured (or that have been manufactured) in a sales-order
production environment or in an engineer-to-order environment.
Individual requirements materials are manufactured for the sales order stock or project stock. They
are not placed into the make-to-stock inventory.
In contrast to individual requirements materials, collective requirements materials are carried in the
make-to-stock inventory. Whether a material is an individual requirements material or a collective
requirements material is specified in the material master
mixed costing (CO-PC)
Product Cost Controlling (CO-PC)
A costing method that uses multiple cost estimates to calculate a mixed price for a material.
An equivalence number is applied to each of the cost estimates, and the cost estimates are adjusted
to a uniform costing lot size. The result is a mixed cost estimate that can be used to update the
standard price.

mixing ratio (CO-PC)

Product Cost Controlling (CO-PC)
The proportions of the procurement alternatives used in a mixed cost estimate, as defined by
equivalence numbers.

order BOM cost estimate (CO-PC)

Product Cost Controlling (CO-PC)
A cost estimate of the BOM of a sales order item.
This cost estimate is created outside of the sales order.
Order BOM cost estimates are supported for all individual requirements materials in the BOM
structure.

base object costing (CO-PC)

Product Cost Controlling (CO-PC)
Tool for planning costs and setting prices in which items are entered manually in the form of a unit
cost estimate.
A base object cost estimate can be used as an element in other cost estimates and as a basis for
planning other objects in the SAP system, such as material cost estimates without a quantity
structure, production orders (CO), and WBS elements.

moving average price (MM-IV)

Invoice Verification (MM-IV)
A price that changes in consequence of goods movements and the entry of invoices and is used to
valuate a material.
The moving average price is calculated by dividing the value of the material by the quantity of
material in stock. It is automatically recalculated by the system after each goods movement or invoice
entry.

sales document item (CO-PC)

Product Cost Controlling (CO-PC)

An item in a sales document.
The sales document can be a customer inquiry, a quotation, or a sales order.
If the sales document item carries costs and revenues, it can function as a cost object in the Product
Cost by Sales Order component.

alternative material cost estimate (CO-PC)

Product Cost Controlling (CO-PC)
A cost estimate for a material that is not the standard cost estimate used to calculate the standard
price of the material.
The modified standard cost estimate and the current cost estimate are alternative material
cost estimates.

modified standard cost estimate (CO-PC)

Product Cost Controlling (CO-PC)
A costing type that calculates the cost of goods manufactured for a product during the course of a
planning period.
It differs from the standard cost estimate in that it uses the quantity structure that has changed
during the planning period as the basis for calculating costs.

current cost estimate (CO-PC)

Product Cost Controlling (CO-PC)
A cost estimate that can be created at any time to valuate the current quantity structure with the
current prices.
This cost estimate serves the following purposes:

You can compare its results with the results of the standard cost estimate to support decisionmaking in production.

You can transfer the results of this cost estimate to the material master and use them to
valuate the goods receipt when working with materials that use the moving average price.

planning variance (CO-PC)

Product Cost Controlling (CO-PC)
A variance that arises in the planning stage.
The planning variance can be calculated by comparing the target costs calculated in the standard
cost estimate for the material to the planned costs for a manufacturing order.
This comparison is made on the basis of the planned order quantity.
You analyze planning variances for such purposes as optimizing the quantity structure or the lot size
of an order.

production variance (CO-PC)

Product Cost Controlling (CO-PC)
The variance that arises in production.
Production variances can be calculated by comparing the actual costs to the target costs calculated on
the basis of the preliminary cost estimate for the order.
The target costs are calculated on the basis of the yield (actual lot size) delivered to stock.