In SAP S/4HANA Product Cost Planning, the "quantity structure" refers to the master data that defines the necessary components and activities to produce a product. The system calculates this structure using two key master data objects:

1. Bill of Material (BOM): This specifies all the material components and their respective quantities required to manufacture the finished product.

2. Routing: This defines the sequence of production operations, the work centers where they are performed, and the quantity of activities (e.g., machine hours, labor hours) needed for each operation.

Together, the BOM and routing provide the quantitative basis for a product cost estimate.

B. Work center: A work center is a location where an operation occurs. It is specified within the routing and is used to calculate costs, but it does not define the quantity structure itself.

C. Cost center: A cost center is an organizational unit that incurs costs. It provides the activity prices used to value the operations in the routing but is not part of the quantity structure.

1. SAP S/4HANA Help Portal

Product Cost Planning (CO-PC-PCP)

"Cost Estimate with Quantity Structure": "To create a cost estimate with a quantity structure

the following master data is required: Material master records for the materials to be costed... Bill of material (BOM) for the material... Routing for the material..." This source directly confirms that the BOM and Routing are the required master data for the quantity structure.

2. SAP S/4HANA Help Portal

Product Cost Planning (CO-PC-PCP)

"Valuation of the Quantity Structure": "The system valuates the quantities in the quantity structure with prices from the material master records and the activity prices from Cost Center Accounting." This clarifies that the cost center's role is in valuation

not in defining the quantity structure.

3. SAP S/4HANA Help Portal

Production Operations (PP-SFC)

"Routings": "Routings are used as a source for creating a production order or a run schedule header. They determine the production methods... They are a central component of product costing." This highlights the routing's role in defining the production process quantities for costing.