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Negative Actual Overhead Cost in Process Order

Dear All,

I have confirmed Process order for which we are calculating overhead cost on the basis of material and activity.I am getting correct Planned Overhead cost but negative Actual Overhead Cost for Process Order.

Thanks in Advance.

Nitin

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  • Posted on Feb 13, 2014 at 11:58 AM

    Hi Nitin,

    Do you have by-products? One exception is negative cost components from costing with by-products, for example. In costing of the primary product, the input costs are entered as positive values but by-product that is created is entered as a negative component on higher side. Therefore, in this situation, it is possible that negative values are in cost components.

    Have you done some good movement reversal?

    Please check the costing sheet for overhead percentage.Take help from your CO person.

    Regards,

    R.Brahmankar

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    • Hi NItin,

      I can see your good issue cost is also in negative as planned cost is less than the actual cost. Your variance is also in negative.

      Have done some price change after standard cost estimate?

      Please refer OSS note 671767 - Unanticipated or incorrect values in cost components which explain possible root causes of negative cost components. Also post same in CO forum.

      Regards,

      R.Brahmankar

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