SAP S/4HANA Product Cost Planning Configuration and Master Data

2.1 Purpose of cost estimates without reference to materials

Using the term “cost estimates without reference to materials” is a bit misleading. What is really intended is the ability to create a cost estimate without having to create a production material to go with it. The research phase of the product life cycle is a time of experimentation, and there is no compelling reason at this point to begin to create materials that will never make it into production. The desire at this stage is the ability to estimate the costs of creating a type of product. If the result is not deemed to be cost effective, then there is no need to move forward with creating a material. SAP provides alternative methods for generating cost estimates without requiring a production material.