Question

What is the difference between SAP's "Standard pricing" and the "cost-plus pricing" processes.

What are 2 ways production components can be issued ti a production. What are their benefits and in which environments they should be used

Answer 1

Standard Pricing Vs. Cost-Plus Pricing

S. No.	Standard Pricing	Cost Plus Pricing
1	We use standard price when there is no fluctuations in the material price	We use cost plus pricing when there is known gross margin over the material or service.
2	It is the actual cost when material procured	Profit margin or mark-up is included
3	It is normally applied in production units	It is applied in construction or logistics contracts.

Answer 2:

The Manual or the Backflush methods are the 2 production component that can be issued to a production.

Manual Method enables the user to issue components as and when they required for the production. It is to be done by the user himself. It is useful in the manual processing industry environment.

Whereas in the Backflush method, the process automatically issues the components when they required without the user interference . It is more useful in fully automated processing environments.