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author's profile photo Former Member
Former Member

Assessment of Cost center to Production orders

Hi,

I would like to run assessment of overhead costs of Production Departament to production orders.

However, I get such warning message when creating the cycle:

"System error: An invalid transaction was used to check whether or not a business transaction is allowed. The transaction Assessment of Overhead costs is not allowed for object type 'Production order'"

"You cannot carry out the requested function for object ZL. 10000001.

Procedure

Please contact your system administrator."

What settings are needed to allow assessment to production orders. I heard that it is possible to make an assessment of CC to production orders.

Best wishes,

Karol

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3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Nov 28, 2007 at 12:46 PM

    Hi Karol

    In my opinion, valid receivers of Cost center assessements does not include Production/Process Orders.

    S Jayaram

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 28, 2007 at 01:43 PM

    Hi.

    Yes it is possible to make an assessment of CC to production orders.

    The error message is issued probably because you don't allow business transaction "RKIU Actual Overhead Assessment" for your production orders.

    You can verify it by checking the Allowed transactions in master data (you can find it in tab control data).

    So, you should allow business transaction RKIU to the production orders.

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    • Former Member

      Hi

      Normally Overheads are applied to Production orders by way of costing sheet, which is generally percentage based on various Direct costs like material, labour, etc. That is how we get Over/Under absorption of OHs. Besides overheads cannot be specifically identified to a particular Prodn Order. Hence in my opinion, Assessment of OHs to prodn order is not possible

      S Jayaram

  • author's profile photo Former Member
    Former Member
    Posted on Nov 29, 2007 at 09:11 PM

    For this scenario, in my opinion I think you should use Activity types include them in routing or use KB21N to directly allocate to production order.

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    • Former Member

      Hi,

      I managed to activate assessment to Production orders in BS12.

      I activated business transactiun RKIU for PP orders object.

      Now it's possible to allocate costs from Production Department CC to production orders.

      However, I have some problem of other nature.

      When I do the standard price calculation - the Overhead costs from Production Departament CC are calculated as % overhead using costing sheet. It is done by cost element with cost element ctg 41.

      The actual Production Departament CC overheads are allocated using assessment. Other cost element with cost element category 42 is being used here.

      How will the system calculate production variances in this case?

      Do u think it is possible to match these two different cost elements?

      Will this CE with 41 ctg be considered during variances calculation and if yes - which variance category will it be.

      I am uncertain about that, cause in normal cases - activitity CE or materials consumption CE are the same in actual and target. In my case overhead CE are different in actual and in target.

      Can u help me with that?

      Best wishes,

      Karol

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