Product costing with components purchased in countries with high inflation

Hi guru,
I have the following problem. My company produced in Italy but buy some component from India, that is a country with high inflation.
When I run the product costing for a finished product in Italy, in which way I can consider the high inflation in India? My doubt is that I can have a wrong product costing because the value of component is not correct
Thanks
Regards
Raffaele

Hi
Product costing allows recursive BOM with certain restrictions. Kindly check the following link for more information on recursiveness:
http://help.sap.com/saphelp_erp2005vp/helpdata/en/bc/566916eff011d189be0000e8214595/frameset.htm
Regards,
Suraj

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