CK11N : Itemization OH costed in activity type uom rather than material uom

[nazir_tarrer]

Hello

I do understand that the OH's are derived from the costing sheet , which are assigned to the OH key (material master) , This activity type UOM is kg and the material uom is LB , when the user executes ck11n , the material is costed incorrectly as the OH is absorbed based on kg rather than LB , so for example , Storage are calculated as 50000 kg * Rate than being calculated as 50000 lb * rate

Question : How do we derive the cost itemization in LB in this case ?

Any inputs will be greatly appreciated

[former_member198686]

Hi Mehta,

If you got the answer please close this thread

[nazir_tarrer]

Hi Ravi

I am already aware of the OH set up for plan and actual in costing sheet and its related config ,

I need to know if there is a template with KP26 rates and a costing sheet , what takes precedence in the calculation of the plan value , is it the costing sheet or the template formula ?

Regards

Shehzad

[Former Member]

Hi shehzad,

In the material master additional data for SFG or FG in additional data option available in header, give the alternative measurement means 1kg=2.2046LB so the out put is converted what ever activity whether kg of lb used in kp26 .

check the same in routing for SFG or FG,

Regards,

Janaki.

[nazir_tarrer]

Hi All

I was able to resolve the issue .The UOM conversion already existed in additional data  ,
MARA-GEWEI was set to lb and MARA-MEINS was set to CAR.  Created new activity type , with activity unit as lb and cost element as category : 43 , Change the template formula  which is linked to the OH group (assigned in the Mat master) - senderactivitytype = new activity type # and ran the cost cost estimate CK11N and it worked. The rate was being derived from KP26 . However I still am not able to understand where does costing sheet numbers come into play here other than the costing key is assigned to template in the config ,but I will eventually find out

Thank you All

Shehzad

[former_member200883]

Hi,

You can configure the std rate in KP26 per LB instead of kg.

Thanks,

Jaidev

[OwenLiu]

Hi Shehzad,

As I know overhead should be calculated based on value, not on quantity. So UOM should not be relevant.

Could you please share your setting and result screen?

Thanks & Best Regards,

Owen

[nazir_tarrer]

Thanks Owen , Please see the attached image

[OwenLiu]

The E type in CK13N should be Activities. So this should be according to your routing setting.

The overhead only follow the base, so I think this is not a problem.

Best Regards,

Owen

[nazir_tarrer]

This is not part of routing , the cost element assigned to the activity type is set up as category 43 instead of 41 , there is a KP26 rate as well as rates in costing sheet based on OH key  and then there is template as well . I am confused as to what takes precedence in the calculation , The activity master data has uom as KG instead of LB , we will probably have to create new activity type and assign LB as the UOM

thanks for your inputs though

[former_member198686]

Hi Mehta,

Yes what you said in above is right, you have to create new cost element with Category 43, then maintain activity type in basic data with LB , maintain thous same setting in routing also, then create one costing sheet as you required with basic data and assign thous costing sheet to your costing variant then run CK11N.

For your under ref:

Overhead cost is the indirect cost that we capture according to the customer's requirement. If certain items for certain products alone should not be considered for costing means,then we can achieve this using costing relevancy indicator in the BOM and for the activity(operation's mentioned in routing) which should not be considered for costing also can be mapped by removing the costing relevancy indicator in routing. Overhead group is assigned in Costing 1 view. ,*Creating Cost center - KS01, *.Create Activity Type - KL01., *.Assiging Rates for a cost center/activity type combination in T code KP26. * Then run Cost estimate Related T codes are CK40N,CK11N,CK24.

Regards,

@KRK@

[nazir_tarrer]

Thanks Ravi

what is the precedence on Cost calculation . Does the template takes precedence over costing sheet  ?How is the plan value calculated when there is a template & costing sheet ?

Can we change the template formula to calculate the value based on the BUOM only ?

Understanding : the activity type rate in template calculates based on KP26 rates !

Regards

Shehzad

[former_member198686]

Hi Mehta,

Plan values will calculate based on your assignment in bellow path:

Controlling ->PCC->cost object controlling ->pco->basic settings for product cost by order -> over head -> costing sheet components -> define percentage overhead rates.

On that select your over head rate click on details there you see on below details

Below over head type 1 is for actual and 2 is for plan it will pick based on this with KP26 plan link.

For you ref:

Use full link:

.

Regards,

@KRK@.