Preliminary costing and Simultaneous costing

hello gurus,
              can any one explain the difference between Preliminary costing and Simultaneous costing in Product cost by Period.
Regards
rihana

In product cost by period you are generally using product cost collectors.  The preliminary cost estimate is the estimated cost for the product cost collector prior to manufacturing.  The cost estimate is calculated when the product cost collector is saved and the estimate is based on the costing variant that is assigned.  Simultaneous costing happens as a result of manufanufacturing and the confirmation process.  It represents the cost of the materials, activitities, and overhead that are actually charged to the product cost collector.  Typically, with product cost collectors materials and activities are backflushed.  The amount of the backflush can be based on the preliminary product cost estimate or a standard cost estimate.  Simultaneous costing uses a different costing variant then preliminary costing, so valuation strategies for materials, activities, and overhead can be different for both as well.
thanks,

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