SAP Product Lifecycle Costing
SAP Product Lifecycle Costing is the solution to simulate, calculate and compare product costs during its lifecycle.
During a new product designing process, SAP Product Lifecycle Costing enables the calculation of the costs of the initial phases, but also the quotations to present to clients.
Otherwise, during the lifecycle management, it’s possible to quickly identify cost drivers, but also simulate modifications and compare different alternative solutions.
The goal is to be able to calculate investment costs in the starting phases of the lifecycle, to cover them in a short period time.
Fourteen TEC can help you to improve your performance: calculate investment costs in the starting phases of the lifecycle, to cover them in a short period time.
Which kind of costs are manageable with SAP Product Lifecycle Costing?
Design-to-cost
Defines costs during the early design stage of a product, avoiding unnecessary expenses in the next developing stages.
Should costing
Estimates which parts can be outsourced in the early development stages and negotiates their purchase price.
Lifetime calculation and simulation
Displays all product lifecycle costs,
to ensure the return of the initial investment.
Target Costing
Defines a budget and compares it with the total calculated cost to identify unnecessary costs.
Variant calculation and simulation
Defines which product variant is more profitable by creating simulations with different configurations.
It manages costs accurately
in the entire product lifecycle.
Every product starts its lifecycle from being new and useful and ends with the withdrawal from the market. That period is linked to the consumer’s feedback and its commercial success. Due to this continuous process, companies must be ready to develop new innovative products as fast as possible. With customer orientation as a primary focus, the majority of companies are requiring tailored quotations at competitive prices.
The greatest risk that can damage profitability is the initial cost’s lack of visibility.
SAP Product Lifecycle Costing supports enterprises in the calculation of product lifecycle costs.
SAP Product Lifecycle Costing
offers many benefits to enterprises.
Increase profitability.
Increases profitability by calculating quotations and lifecycle costs during the early design stages.
Optimizing costs and maximize revenues.
Even if technical data are still incomplete, simulates different cost scenarios, in the early development phases
Going to market quickly and cost-effectively.
Improves cooperation between company areas using leaner processes that accelerate research and development procedures.
Functionality overview of SAP Product Lifecycle Costing.
Calculation Structures
Calculations
Versions
Reference calculations
ERP/Excel import
Valuation Data
Prices, tariffs
Costing sheets
Currencies
Units of measure
Calculation Master Data
Material
Cost center, workplaces, processes
SAP ERP & S/4HANA integration
Projects
Project master data
Lifetimes
Surcharges
Extensibility
Custom fields / Formulas
Integration to other application
templates
API / Add-in framework
Analytics
Self-service analytics
Managed analytics
Management reporting
KPI analysis
User Support
Mass change
Highlighting
Layout
Search
Authorization / Data Security
User management
Security engineering
Locking
Single sign-on
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SAP PPM & Product Cost Leader |
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