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SAP Product Lifecycle Costing

Calculate costs and safeguard your future profit margins for new products or quotations early in the product lifecycle.

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 or cloud 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

Optimise costs and maximise 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.

See how customers are succeeding with SAP

Key Capabilities

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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 modelling 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

Advanced technology

  • Expand your visibility by leveraging all existing cost-relevant information     
  • Identify cost drivers quickly by using a real-time calculation engine powered by SAP HANA
  • Optimise product costs along multiple dimensions by embedding what-if analysis

Build a business case

Boosting efficiency with intelligent search and machine learning

Find out how machine learning capabilities are helping to improve the new product cost process.

openSAP Course: Freedom to Calculate with SAP Product Lifecycle Costing

Join this free online course to learn the essentials of SAP Product Lifecycle Costing including use cases, all capabilities, brand new features, business processes, and best practices on implementation. SAP Product Lifecycle Costing allows you to simulate your future product costs at an early stage, enabling you to optimise your mid-term financial planning and supply chain.

Technical Information

SAP Product Lifecycle Costing can be deployed in the cloud or on premise, and system and software requirements vary by specific customer scenarios.


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

Installation and setup

Follow the setup instructions so you can start running your SAP software quickly and confidently.

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 centre.

Questions? Get in touch!

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