The company in question is one of India’s largest consumer electronics companies, producing a wide range of consumer durables, including speakers, IT accessories, mobile accessories, personal care appliances, and medical products. It has sold over a billion products and services across 20,000+ pin codes in India.
To develop a detailed and comprehensive product costing substructure mechanism that embeds into the overall product cost management (PCM)  structure. Thus, the PCM framework will form part of the comprehensive management information system (MIS), facilitating a decision support system for the management to make well-informed decisions.
Re-configure the product costing framework into the SAP-ERP system (SAP-CO-PC) to enable its alignment with MIS and SAP systems.
Product costing is assigning costs to products based on the principle of cause-and-effect. Given below is a framework for deriving costs for each cost element:
Data Source and Validation Rules
* Actual Material Consumption = Material Opening Stock + Quantity Purchased – Material Closing Stock
Standard Material Consumption = Product BOM recipe X FG quantity produced (using MCRP tcode)