Use of SOP Data in Cost Center Accounting

If you have planned product group and/or material quantities in standard SOP, you can pass on your production planning data to Cost Center Accounting (CO-OM-CCA) where the cost of producing the planned volumes is determined. Cost Center Accounting is part of Overhead Cost Controlling (CO-OM).

Thus, your company has access to accurate, up-to-date estimates of the costs that will be charged by a particular cost center for different types of production activity. In addition, the availability of activity requirements data from SOP can benefit your actual cost accounting procedures; for example, where activity prices are fed from Cost Center Accouting to Product Costing and used to work out the cost of sales. The results of these calculations can even be passed on to Profitability Analysis (CO-PA) where the overall profitability of a venture can be determined.