5. Differences between costing models
There are actually three different types of cost models in M3 BE, each one used for a specific purpose:
| Name | Description | Where created |
|---|---|---|
| Costing model | This costing model calculates the cost for purchased items and distributed items. It is simply called costing model in M3 BE. | 'Costing Model. Open' (PPS285) |
| Product costing model |
This costing model calculates the standard cost of manufactured products. It reuses the purchase/distribution cost calculated by the costing model above. The product costing model is built out of costing components and costing elements, the equivalents to costing elements in the costing model. |
'Product Costing Model. Open' (PCS025) |
| Sales costing model | This costing model calculates sales prices in a sales price list. It reuses values created by the two other types of costing model. | 'Sales Costing Model. Open' (OIS022). |