Answer Posted / Rahul Prasad
In SAP FI-CO, Stranded Cost estimation can be done using the 'Cost Element' feature. The process involves creating cost elements for each project or activity, and then assigning costs to these elements. Overhead costs that are incurred even if a specific project or activity is terminated before completion are considered as Stranded Costs. To estimate these costs, you can create a 'Planning Version' for the respective cost center or profit center and allocate overhead costs to this version. The differences between actual costs (in the current accounting period) and the planned costs in the planning version will represent the Stranded Costs.
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