Standard Cost estimate in 7 steps (SAP S/4HANA)
1. Upload Budget by Cost Element and Cost Centre (KP06) Once the company budget is finalized and approved,...
What is Standard Cost?
Standard cost is an estimate used to value production materials (both finished and semi-finished goods) at a predetermined...
How to calculate Free Cash Flow (FCF) – with example
The Free Cash Flow is the net amount of cash generated by the company, and available to repay...
Understanding the components of the sales bridge (price volume mix analysis)
In my previous post, I explained the “Sales Bridge” concept and how to build it. This time, I...
How to perform a sales bridge (or price volume mix analysis)
A sales bridge (or price volume mix analysis) is a report which shows the gap between budgeted and...
Budget responsibility matrix
A few years ago, I was researching information for my master’s degree final project. The title of my...
Cost center hierarchy in manufacturing plants
A cost center is an entity that generates cost within the company. This entity is often a department,...
SAP Cost Center: transaction codes
Cost center A cost center in SAP is an organizational unit (department, production line, work position…) where the...
Labor Types in Manufacturing: A Cost Perspective
In manufacturing companies, there is a wide variety of positions and professional profiles (unskilled and skilled): operators, forklift...