Hi Lokesh,
both product are complementary. No replacement of SAP CO product costing with PCM is in any discussion. PCM is mainly an ABC costing module doing an excellent job for assigning overhead costs to the cost objects, but it is much less integrated into the PP and MM modules and cannot do the operative cost management tasks that SAP CO does by routine. PCM is more on the analytical side. Due to that share of tasks both solutions complement each other excellently. Generally I would say PCM is more important for service industry or service departments in a company, while CO is strongest in a manufacturing environment.
There is a official positioning paper out, to clarify the roles of both applications.
It is not true that there is no further development in CO-PC and CO-PA, although you might be right that there were no major ones. A mature application that performs daily mission-critical tasks at 10.000s of customers is treated with care. But it is held up to date to keep up with new challenges, like the newGL and IFRS and will in the future.
I speak here as a former CO developer, still in touch with the team. I am not an official SAP spokesman an not making legally binding statements for SAP...
Best regards,
Udo
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