on 07-30-2020 7:59 AM
Dear All ,
In our system Overhead allocation is currently made on the basis of Actual production; which needs to be modified.we need the allocation based on higher of actual or standard production
We have performed below activities to achieve above requirement but results are not up to our satisfaction
Step 1: KL02: Activity Type “LABOUR”: Actual Allocation Price” indicator is changed is changed from
“5” (Actual price, automatically based on activity) to “6” (Actual price, automatically based on capacity)
Step 2:KP26: Defined Plan Capacity for Activity type “Labor” on cost center 11101.
Plan activity is 900 units
Step 3: CO11N: Production Order Confirmation
Actual Quantity Confirmed =300 units
Step 4: Actual Expense on Cost center 11101
STEP 5:KSSII – PRICE Calculation Result
Overheads = 6,000,000
Plan Activity / Standard production = 900
Actual Activity = 300
Requirement =Overheads / max (Plan activity, Actual activity)
=6,000,000/Max (900,300)
= 6,000,000/900
= 6,667 =Result = OK
Scenario 2: In case actual Production Capacity is higher than standard production capacity
Expected System Behavior: Overheads should be divided on the on Actual Production capacity rather than standard Capacity as it is higher than the latter
:KP26: Defined Plan Capacity for Activity type “Labor” on cost center 11105.
Plan activity is 900 units
Step 3: CO11N: Production Order Confirmation
Actual Quantity Confirmed is 1200 units
Current System behavior:
Overheads = 6,000,000
Plan Activity / Standard production = 900
Actual Activity = 1200
Formula =Overheads / max (Plan activity , Actual activity)
= 6,000,000/Max (900,1200)
= 6,000,000/900
= 6,667
= 6,000,000/900
Result = 6,667 =not ok
Expected Result = 6,000,000/1200= 5,000
Please suggest appropriate solution for above requirement .
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