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Former Member

Quantity Based Overhead Calculation - Cost element UOM

Hi SAP Gurus,

I have below scenario and need to calculate the OH based on the Quantity of Sub-Contract Fee.

Sub-contract fee is based on the quantity for each out-put product.

Step 1 - 3 RM will be provided to third party and 1 Semi-finished product will be received

Step 2 - Above Semi FG will be send to third party and 1 Semi FG will be received

Step 3 - Above Semi FG will be send to third party and FG will received

Step 4 - This FG will be sold

At each of the 1,2,3 steps there will be sub-contract fee based on the units of material they deliver.

Hence business need the OH cost to be calculated based on the units of the sub-contract fee. So, I have created this as base.

For Step 1 we are doing CK11N and its working well and bringing the OH

For Step 2 as the Material we are costing has UOM different than the UOM on the CE of sub-contract fee, its not working

                         I have even maintained the conversion factor on Material Master but it didn't work.

Is there any other way to get the OH Calculated?

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2 Answers

  • Oct 18, 2015 at 02:09 AM


    I don't think it's relevant with UOM.

    Do you mean if the UOM is the same, then the OH can be calculated successfully?

    Best Regards,


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    Former Member
    Oct 19, 2015 at 09:16 AM


    Refer to  the below IMG description.

    Additional Information

    To apply quantity-based overhead rates, the units of measure must be updated in Controlling (CO).

    You have two options:

    • Set the Record Quantity indicator in the cost element master data.
    • If you want to assign different materials to an object (order, cost center, business process, WBS element, etc.) under the same cost element but with different units of measure, set the Material Origin indicator in the costing view of the material's master record. In addition, materials with different units of measure must have different entries in the "Origin Group" field.

    With quantity-based overhead rates, the system only includes input materials and activities with units of measure that are updated in CO. For materials, these are the base units of measure.

    Conversions between units of measure are based on the rules stored in the global settings in Customizing (step Check Units of Measurement). Quantity conversions (such as those that you define in the material master) are disregarded.
    For example, the system applies overhead in $ per kilogram to input materials with the base unit of measure "G" but not to materials with the unit "pallet".

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