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Improve profits by managing costs accurately in the early design phase

Secure future product margins in the early stages, when the design is evolving and master data is incomplete. With the SAP Product Lifecycle Costing solution, you can gain visibility across teams, proactively manage costs, and support new product innovations and customer-specific engineered products.

  • On-premise deployment
  • Flexible user interface to create costing structures and simulations
  • Open integration with ERP solutions from SAP or any other costing data source
  • Extensibility framework to adjust to customer needs

Key Benefits

Increase profitability

Use early product engineering, quotations, and lifecycle costing to help increase

Optimize costs and maximize revenue

Calculate and model various cost scenarios while designs are still evolving and master data is only partially available.

Go to market quickly and cost-effectively

Achieve leaner processes and accelerate research and development by enabling collaboration and reducing expenses.

Key Capabilities

Product cost calculation and simulation

  • Support modern, real-time cost calculation using SAP HANA
  • Handle calculations flexibly with manual override and recalculation capabilities
  • Enable versioning, what-if simulation, and target costing 

Data modeling and extensibility

  • Use custom attributes, fields, and formulas
  • Access multiple costing sheets and component splits
  • Manage local master data maintenance as well as integration with enterprise and Microsoft Excel software


Inbound and outbound integration

  • Import data from SAP ERP, Microsoft Excel, and other applications using the API
  • Export data to Microsoft Excel and other applications using the API


  • Use the price selection strategy for components and activities
  • Support different currencies and dimensions
  • Calculate overhead cost through any number of costing sheets

Analytics and reporting

  • Apply management reporting
  • Use project analysis and reporting across the product lifecycle, costing categories, and other dimensions
  • Access version comparison

Security and collaboration

  • Restrict access
  • Deploy traceability
  • Enable collaboration tools for users and roles

Technical Information

SAP Product Lifecycle Costing is deployed on premise, and system and software requirements vary by specific customer scenarios.

Installation and setup

Follow the setup instructions so you can start running SAP Product Lifecycle Costing quickly and confidently.


Optimize configuration of SAP Product Lifecycle Costing with this comprehensive
configuration guide.

Product road map

Refer to the road map for SAP Product Lifecycle Costing to see how the technology is planned to progress over time.

Build a business case

Improving product cost and profit margins

Learn how global agricultural equipment leader AGCO implemented a standard process to calculate cost and maintain profit margins.

Leveraging standardized costing with SAP solutions

Find out how DAIMLER optimized engine design with automated processes and more efficient product lifecycle costing calculations.

Optimizing quote processing speed and accuracy

Discover how BÜHLER is improving costs and profit margins by producing more accurate product estimates for customers more quickly.

Get Started

Jump-start your implementation and drive ROI by collaborating with industry experts, consultants, and support engineers throughout your journey.


Transform your business quickly and effectively by taking advantage of our holistic service and support plans, expert consulting services, custom application development, proven best practices, and deep industry and technical knowledge.


Help keep your SAP solutions running at peak performance with our IT experts and support services, including long-term plans, embedded teams, remote technology support, self-service portal, and innovation strategies.

Security and compliance

Focus on your business and customer relationships, while keeping your data safe and reliable. SAP takes a proactive, predictive approach to maintaining compliance and data security in the cloud and within an on-premise data center.


Access free online courses with openSAP

Experience a flexible, engaging, and open learning environment that is designed to help you optimize your software investment.

Questions? Get in touch!

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