Defining Accounting Cost Quantities for Standard Costing

The system uses accounting cost quantities to determine the allocation of fixed costs for an item. Accounting cost quantities represent the standard quantity of a work order or rate schedule for this item. During cost rollup, the system divides the fixed costs by the accounting cost quantity that you specify to determine a per unit fixed cost.

You use the Item Branch/Plant program (P41026) to define accounting cost quantities for standard costing.

Note: If you use either of the actual cost methods (02 or 09) for an item, you do not need to complete this task.