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Former Member
Dec 19, 2011 at 06:41 AM

Difference between preliminary cost estimate and standard cost estimate

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Hi,

I noticed in most of the implementations the valuation variants for preliminary cost estimate and standard cost estimate always uses the same material and activity prices. In that case the preliminary cost estimate values does not differ from the standard cost estimate figures.

In that case what is the actual/proper use of preliminary cost estimate? How can i use it in a way different from the standard cost estimate figures so that it helps me better?

I know i can change the planned costing variant of the manufacturing order to use a different valuation approach but my question is not about that. My question is rather why do we need preliminary cost estimate when we have standard cost estimate.

Edited by: FICO Consultant on Dec 19, 2011 7:41 AM