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Former Member
Aug 09, 2007 at 02:05 PM

Raw Material Costing with Overhead, Product Cost Planning



I have an issue applying overhead to purchased raw materials. We need to apply this overhead for only a certain materials. So, I have defined a overhead key/overhead Group, and assigned the group in the material master of the raw material. The overhead is 2% freight on raw material costs.

In the std.costing variant, I have assigned the costing sheet under Overhead on material components tab of the corresponding valuation variant. I have also included the Freight OH in the cost component structure.

However, when I run the costing with CK11N for the raw material, it is showing only the raw material cost, not the overhead.

What could be the problem?

I appreciate your help.