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Former Member

Calculation of Over head in MO

Dear PM Guys,

In MO when overhead is calculated.

Iam finding in MO,under Tab Additional data,one field is there Named OBJECT CLASS with filled in value of OVERHEAD.From where its coming and what is the impact of cost showing in cost tab.

I request your to brief the things.

Regards

ISWARI

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  • Best Answer
    Posted on Nov 22, 2007 at 08:09 AM

    Hi

    Generally Maintenance order are overhead only because it is indirectly assiting the production.Hence whatever cost involved in PM will be secondary cost since it is with respect to the cost center

    The object class categorizes Controlling objects according to their business function and enables you to analyze cost flows within Controlling from different business perspectives.

    <b>The following object classes are available:</b>

    Overhead

    Production

    Investment

    Profitability analysis and sales

    While certain object types automatically belong to a particular class (for example, cost centers belong to the "Overhead" class), others need to be explicitly assigned to an object class in their master record (this is the case with internal orders and work breakdown structure elements, for example).

    since we are settling against the cost center genreally MO will be overhead only

    hope you have cleared

    regards

    thyagarajan

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 23, 2007 at 02:45 AM

    Dear Mr Thiyagarajan,

    Thanks for your reply.Pl clarify one thing

    In my understading Over calculation for order is nothing but settlement of order

    (as we have defined KO8G in background daily) to the cost center defined in MO.Eventhough if we made any goods reversal in MO after settlement it will reflect in costing tab but it wont reflect in CC,since it is already posted.To get it reflected in CC,we have to manually reverse the settlement of MO using KO88 and re-settle it again.

    Is it right sir,

    Regards

    ISWARI.

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    • hi iswari

      Yes the process following is correct, but i recommed that finish all your process in MO and settle .because if you forget to resettlement then costing will be varied, also since the order is open someone can still use and the overhead calculated and amount settlement will be different .Hence please do the technical completion of the order and do the settlement run.

      regards

      thyagarajan

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