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Nov 18, 2014 at 06:22 AM

Template allocation method is not working correctly in calcuating standard cost estimate


Dear Experts,

I am encountering with an issue while using template allocation method for allocating plan indirect overhead to product i.e. calculating standard cost estimate for the product. first let me give you some brief about the scenario.

here at our client, we are having few activities as direct i.e. Machine, labor and Energy etc. and few have been created as indirect ones like Factory overhead and admin overhead etc.. And client wants to calculate the indirect overhead activity rates basis labor hr while calculating standard cost of the product. and to inform you we are using plan cycle i.e. we are maintaining the budget w.r.t. cost elements at cost centers, doing LTP run for direct activity quantity updation on cost centers, plan assessment, splitting and price calculation. to calculate the activity quantity of indirect overhead i.e. factory we are using following function in template,

Enviornment 001

  1. 1. Type = Cost Center/Activity Type
  2. 2. Description = Cost center / Factory overhead activity
  3. 3. Object = SenderCostCenter = '10920' AND

SenderActivityType = 'FCTOVH'

  1. 4. Plan Quanity = ActivityTypePlanQty(
    CalculationType = '1',

FiscalYear = CurrentFiscalYear,

CostCenter = '10920',

ActivityType = 'DTLBHR',

Version = PlanVersion )

AND We have activity dependent plan cost at cost centers for activity FCTOVH as Rs.100000.00 and we have two work centers( assigned in two different routing) assigned with cost center 10920 which have following QUANTITATIVE INFORMATION for Activity DTLBHR as follows.

wc1 routing 1 DTLBHR = 50 hr, wc2 routing2 DTLBHR =40 hr i.e. total DTLBHR = 90 hrs at cost centers 10920. now when we are testing the plan template it is calculating correct overhead quantity for activity FCTOVH as 90 hrs which is equal to total quantity for DTLBHR at cost centers. but when we are doing Plan activity price calculation thru KSPI system is not calculating any price for FCTOVH activity. and when we are giving manual rates in KP26 for FCTOVH and calculating the standard cost of one product which has wc1 and routing 1 in its quantity structure data, system is calculating cost of FCTOVH as 90 hrs multiplied with rates rather than 50 Hrs. due to this we are unable to calculate the standard cost correctly. so if some one has worked on same scenario earlier, can guide me thru correct process if I am missing some where. one more thing on which I seek help is in LTP scenario like wise system updated the schedule activity quantity for direct activity, how we achieve the same for indirect activities which we are calculating thru template.


Ashok Verma