Assessment of Cost center to Production orders

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

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