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Former Member

Rounding off for Activity Price (variable)

Hello SAP Gurus,

According to our accounting department, when Variable Price is less than 0.25, lets say 0.16, SAP is rounding it off to zero.

Is this correct? I am a bit confused. I dont know how to compute for the costing.

Can you further explain where is the variable price is used?Pls explain further.So I can justify to them.

Thank you,

Athena

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3 Answers

  • Best Answer
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    Former Member
    Oct 16, 2015 at 06:22 AM

    Hi

      Variable price are used in activity dependent process where values are variable with production volume/activity qty....

      Regarding your question rounding off it's depend upon your unit of measure where you have defined value without decimal places or  some other logic. please check unit of measure.

    Kamal

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    Former Member
    Oct 20, 2015 at 04:52 AM

    In KP26, we assigned variable prices for Cost Center XXXX

    Costing Lot size: 10,000

    For the routing display (ca03) we maintained the ff:

    Base Quantity 10,000 pc

    Activity type:

    Labor                     1 Hour

    FSD                     10,000 pc

    FSI                       10,000 pc

    Depreciation        10,000 pc

    Indirect Labor       10,000 pc

    Machine (OOH)    10,000 pc

    Scrap                     0

    The resulting cost estimate for the above material is.

    Question:  How to compute for the cost estimate for each activity type?

    Main Material?Parts?Purchase of Products?Direct Labor, Labor Indirect, Fact supplies direct/indirect,depreciation, other overhead cost.


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    Cost est.JPG (41.0 kB)
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  • Oct 16, 2015 at 07:19 AM

    Hi

    I don't think that you should do rounding this way.

    At the time of production order confirmations this price is multiplied by the activity quantity confirmed by the user and a value is posted in the order and at the same time a credit is given to the cost center which is providing the activity. If you do such rounding the credits will some time not be given to the cost centers hence they will remain under absorbed. Means your product is not absorbing the cost correctly.

    Regards

    Rajneesh

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    • Former Member Former Member

      That is correct Kamal,

      For example,

      In KP26,

      we maintained the following activity rates (variable)

                                                  Activity Rate (variable rate)              Cost Estimate (variable cost)

      Direct Labor                         0.25                                                            0.01

      Labor Indirect                       0.01                                                            zero

      Factory Supplies Indirect     0.20                                                            zero

      Factory Supplies Direct       0.01                                                            zero
      Depreciation                        0.01                                                            zero

      Other Overhead cost          0.39                                                           100.01

      Why is that ONLY the DIRECT LABOR  0.01 & OTHER OVERHEAD COST 100.01 has value on the cost estimate???