• Product lines are set up in Product Line Maintenance. They provide inventory accounts for an item so that costs can be tracked.

• Current costs for items are calculated based on the setting in Inventory Accounting Control (Last, Average, None).

• Item data is entered by area—general, inventory, planning, and cost data.

• Product structure is defined in Product Structure Maintenance (or Formula Maintenance) indicating the quantity per and routing operation where the item is used.