SAP Product Lifecycle Costing (SAP PLC)

Name: leverX Company
Brand: LeverX
Rating: 4.9 (114 reviews)

Quickly and precisely calculate costs and other dimensions for products and quotes early in the development process.

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SAP Product Lifecycle Costing is an SAP solution used to calculate product costs given the features of each production stage. With SAP PLC, you can simulate and compare alternatives to gain better visibility and control throughout the product lifecycle.

With this solution, you can minimize future risks and improve your profit margins. SAP PLC works with structured (BOMs, routings, etc.) and unstructured data (custom formulas, variable units, text items, etc.). It helps companies structure and standardize company-wide cost calculation according to common criteria in a unified format.

SAP PLC can be deployed on-site or via cloud; it can be used as a stand-alone solution or integrated with your existing solution landscape.

Preliminary cost estimates

Create a pricing structure and prepare preliminary cost estimates without detailed information such as master data or prices.

Quotation costing

Estimate costs for unique and complex customer products given different price determination strategies and compare the original quote with the revision.

Lifecycle costing

Evaluate and optimize costs during each production phase throughout the manufacturing process, from the production start to product distribution. To reach maximum profitability, you can create different calculation versions.

Better decision making

The SAP PLC solution includes a “what-if” simulation scenario to help you make the most favorable product costing decisions for the entire lifecycle of your products.

Data categorization

Categorize and easily identify calculations and various calculation versions using the folders, statuses, and tags. You can also integrate this solution with enterprise and Microsoft Excel software to import data and structures, such as BOMs, routings, and standard prices.

Faster time to market

Accelerate research and development processes with better business insights through a single reporting and analysis interface.

What Business Issues Will You Overcome With SAP PLC?

Built for cross-functional product organizations, SAP PLC provides one workspace to simulate, benchmark, and govern costs for products and quotes, aligning decisions across design, procurement, and controlling.

Product cost calculation and simulation

Perform real-time cost calculations based on accurate, up-to-date data.
Use manual override and automatic recalculation when assumptions change.
Create multiple cost estimates with what-if simulations and target costing to evaluate alternative scenarios.

Early cost modeling

Build costing models even when detailed BOMs are unavailable.
Leverage analog-based estimation to predict costs early in the product lifecycle.
Reduce financial risks by identifying cost drivers before making design or production decisions.

Versioning and delta analysis

Maintain multiple versions of product cost calculations.
Compare versions with delta analysis to identify deviations and their root causes.
Make data-driven decisions on cost optimization and design adjustments.

Multilevel BOM costing

Calculate costs across hierarchical BOM structures, including external components and suppliers.
Get complete visibility into material, labor, overhead, supplier fees, and markups at every BOM level.
Streamline collaboration between engineering, procurement, and finance teams.

Data modeling and extensibility

Define custom attributes, fields, and formulas to tailor cost models to business needs.
Work with multiple costing sheets and component splits for complex pricing structures.
Manage local master data directly within SAP PLC.

Pricing and overhead management

Apply flexible price selection strategies for components, activities, and services.
Support multiple currencies, units, and cost dimensions for global operations.
Calculate overhead costs using customizable costing sheets.

Analytics and reporting

Generate real-time reports on costs, KPIs, and financial performance.
Perform scenario modeling and what-if analysis to evaluate cost optimization strategies.
Compare project costs across the entire product lifecycle and identify savings opportunities.

Collaboration and workflow management

Coordinate across teams with role-based access, task assignments, and review/approval workflows.
Comment, mention, and subscribe to changes; lock versions to prevent unintended edits.
Import supplier quotes and compare scenarios to align sourcing and cost engineering.

Compliance and auditability

Maintain immutable version history with timestamped changes and user attribution.
Enforce governance with standardized costing sheets, approval trails, and segregation of duties.
Attach source documents and rate justifications to ensure full traceability for audits.

Scalability and performance

Manage deep, multilevel assemblies and large product portfolios with reusable templates.
Perform mass recalculations when prices, exchange rates, or overhead rules change.
Keep performance predictable with incremental updates and portfolio-wide roll-ups.

Sustainability and environmental costs

Include CO₂e and environmental fees as cost elements alongside traditional components.
Compare materials and suppliers on both cost and footprint to support greener decisions.
Report sustainability KPIs within the same dashboards used for cost and margin tracking.

Import the pricing structure from any data source or its manual creation

Automatically determine the price according to a defined strategy

Create an initial basis on the first cost estimate calculated and saved

Simulate/create further cost estimate versions with up-to-date price information

SAP PLC achieves maximum value when seamlessly connected to your enterprise ecosystem.

SAP S/4HANA: Transfer cost calculation results directly into Controlling (CO) and Production Planning (PP) modules to enable finance and production teams to work with aligned cost data. This integration ensures consistent reporting, accurate planning, and optimized production strategies.
SAP Project System (SAP PS) / SAP Portfolio and Project Management (SAP PPM): Link cost simulations to new product development projects for better budgeting, resource allocation, and risk assessment. Project managers gain full visibility into projected costs at the earliest stages.
SAP Engineering Control Center (SAP ECTR) / CAD Systems: Import design geometry, material specifications, and engineering data directly from CAD systems into SAP PLC. This integration guarantees that cost simulations are based on up-to-date design data, which reduces manual input and improves estimation accuracy.
SAP Product Lifecycle Management (SAP PLM) / BOM Management: Leverage hierarchical Bills of Materials (BOMs) and PLM objects within SAP PLC to create precise, multi-level cost simulations. It supports costing across complex product structures, including external components and supplier inputs.
SAP Analytics Cloud (SAC): Visualize cost deviations, profitability, supplier comparisons, and scenario-based simulations using interactive dashboards. SAC integration provides real-time insights into financial performance and enables instant comparison of multiple product versions.

SAP PLC and SAP CO-PC: Complementary Roles in S/4HANA

SAP Product Lifecycle Costing (SAP PLC) is a next-generation module that extends the capabilities of the built-in SAP Controlling – Product Costing (SAP CO-PC) component in SAP S/4HANA. While CO-PC focuses on actual and standard cost calculations during production, SAP PLC enables early-stage simulations and cost optimization before the final BOM is defined.

Parameter	SAP CO-PC	SAP PLC
Where it works	Inside SAP ECC / S/4HANA	On-premise and in the cloud
When applied	During product release and production planning	Early R&D and design stages, before production starts
Type of costing	Standard/actual cost, cost component split	Simulations, what-if scenarios, multiple versions
Operation principle	Tightly linked to ERP objects (BOM, routing)	Works even without a finalized BOM

Design

R&D and engineering teams define the initial concept, specs, and components.

Simulation

SAP PLC runs what-if scenarios, compares suppliers, and estimates costs before the final BOM exists.

BOM

The approved Bill of Materials is finalized based on cost-optimized decisions.

Final ERP Cost

Costs are transferred into SAP S/4HANA and managed via SAP CO-PC for production, reporting, and controlling.

Leverage the power of SAP Product Lifecycle Costing with a trusted vendor

Proven track record

For over 20 years, we have helped businesses worldwide succeed with SAP. We’ve already completed 950+ projects for over 800 clients, including top names on the Fortune 500 list.

Industry experts

The LeverX team comprises professionals with hands-on knowledge in 30+ industries, including manufacturing, logistics, and oil  and gas.

SAP partnership

We implement SAP projects end-to-end  and collaborate with SAP on the development and enhancement of its existing solutions.

Quality and security track record

LeverX operates in compliance with international standards such as ISO 9001, ISO 27001, ISO 22301, and ISO 55001, ensuring reliability and quality in every project.

Investment in innovation

We actively integrate advanced technologies, such as Data Science, IoT, AI, Big Data, Blockchain, and others, to help clients efficiently address their business challenges.

Flexibility

Our team is available 24/7, which enables us to quickly deploy projects, maintain process transparency, and adapt each development phase to meet your specific requirements.

Implementation Roadmap

We follow the SAP Activate methodology, which breaks down the implementation of SAP Product Lifecycle Costing into six essential stages:

Current Processes Evaluation: Assess existing business processes and identify the organization's needs.
Defining Technical Requirements: Create a detailed specification of the functional and technical needs of the new system.

Discover

Setting Goals and Objectives: Establish and agree on the goals to be achieved throughout the project.
Assembling the Project Team: Appoint team members and define their roles and responsibilities.
Project Plan Development: Create a comprehensive plan that outlines project phases, timelines, resources, and key performance indicators.
Budget Determination: Estimate and approve the budget.
Specifications Preparation: Develop the technical and functional specifications for the development team.

Prepare

Ensuring Business Requirements are Met: Check that SAP PLC aligns with business requirements and project objectives.
Data Validation: Verify the accuracy and compliance of the data.

Explore

Data Migration: Transfer data from existing systems to the new one.
System Configuration: Set up the solution according to requirements and specifications.
Customization: Develop additional features and modules, if the standard solution does not meet all needs.
Integrations: Configure SAP PLC to work with other IT systems and applications.

Realize

Testing: Perform functional, integration, regression, and load testing to ensure that all works correctly.
User Training: Organize sessions to help users become familiar with the new system.

Deploy

System Readiness Check: Verify that the system is ready for operational use.
Launch: Officially transition to active use of SAP PLC.
Ongoing Support: Continuously monitor solution performance to identify and resolve any issues.

Run

FAQ

What is SAP PLC?

SAP PLC is a strategic platform designed to bridge the gap between product development and financial control. While traditional ERP systems manage the actual costs of products already in production, SAP PLC focuses on the preliminary stages of the lifecycle. It creates a dynamic costing model to guide engineering and sourcing decisions toward profitability before a product is finalized.

How does SAP PLC contribute to supplier negotiation and procurement strategy?

SAP PLC gives businesses clear cost breakdowns, helping them negotiate more effectively with suppliers. By understanding cost components and analyzing quotes, businesses can secure better deals, optimize procurement strategies, and choose suppliers that offer the best value. This data-driven approach ensures cost-effective procurement and strong supplier relationships.

How does SAP PLC handle uncertainty and price fluctuations for raw materials in its early-stage estimates?

SAP PLC can model price volatility by allowing you to create multiple cost simulations based on different scenarios. You can define various pricing assumptions for key materials — such as best-case, worst-case, and most-likely scenarios — and compare the impact on the total product cost. This helps you understand a product's financial risk profile long before production begins.

What is a typical implementation timeframe for SAP PLC?

A standard implementation of SAP PLC can typically range from 12 to 16 weeks. This timeline can vary depending on the complexity of your existing system landscape, the number of integrations required, and the quality of your master data. The process usually includes system configuration, data migration, user training, and go-live support.

1

An expert will reach out to you to discuss your specific needs and requirements.
2

We'll sign an NDA to ensure any sensitive information is kept secure and confidential.
3

We'll work with you to prepare a customized proposal based on the project's scope, timeline, and budget.