SAP ERP Financials and FICO Handbook

86 CHAPTER 1 INTERVIEW QUESTIONS AND ANSWERS
Costing-Based CO-PA
Account-Based CO-PA
1. Uses characteristics and value fields 1. Uses cost and revenue elements to
to display reports.
display reports.
2. In costing-based CO-PA, you can 2. Takes real cost and revenue from
calculate anticipated cost.
FI; hence you cannot calculate
anticipated cost.
3. Uses tables specific to CO-PA, which 3. Uses CO application tables.
may or may not agree with FI.
4. Revenue and cost of sales are posted 4. Revenues are posted when the
when the billing document is posted.
billing document is posted, while
cost of sales is posted when FI
posting occurs for goods issue.
5. At a given point in time, it may or may 5. Always reconciles with FI.
not reconcile with FI.
TABLE 1.4
Costing-based COPA Vs. Account-based COPA
1.14 PRODUCT COSTING (CO-PC)
202. What are costing variants?
The costing variants in PC play a very important role in product cost calculation.
Unless you maintain this, the system can’t calculate the cost of the product. It is
through this variant that you tell the system where to obtain the cost of material,
labor, activity prices, and Overhead (OH).
The costing variant has five tabs:
1. Costing Type—Here, you maintain the cost estimate like std cost, modified cost
for different purposes, etc.
2. Valuation Variant—This plays an important role, as it determines prices that
the SAP system selects to valuate the quantity structure of the material cost
estimate. It has five tabs.
■ First tab for material valuation gives priority of prices for material cost.
■ Second tab determines activity prices for process cost.