Overhead cost calculation

[Former Member]

Hi experts

Can anybody guide me all the how's and why's of overhead costs as related to maintenance orders.

Why they are needed and how they are calculated ( in detail).

Regards

Nalin

[Former Member]

Thank you very much Mr Amit.

I got it for the query one.

Regarding costing sheet,pl clarify me about the costing sheet details(base,credit&overhead rate)

Is it required to create a new costing sheet in a project or use the standard COPM-Maintenance and service order.

My question may be silly and I request your help to understand the concept quickly.

Regards

KRISHNAN

[Former Member]

Dear Sir

I am working on ECC 5.0, I am not able to run the t-code KG12 or Kg14.

regards

Neelam

[Former Member]

hi raman,

first of all this is 100 million $ question.

this is very good discussion, just use standard one and do neccessary settings in valuation variants.. i think that after having a look on valuation variants u got the idea what to do with plan and actual price calculation.

Base - A group of cost elements. for example all cost elements related to material will be come under this head

Over head - Calculation of overhead is defined here.. lets say 20% of material cost. here u can modifiy the % of overhead calculation.. that u were asking earlier..

credit - as far as credit is concern ,.,.. let me revise it i will give u reply.

Edited by: amit kushwaha on Mar 25, 2008 8:04 AM

[Former Member]

Credit for overhead

The credit determines which credit object (cost center, order, business process) should be credited under which cost element ( cost element category"41") in which period.

Additionally, it is determined which percentage of the specific overhead is allocated as fixed costs.

Credits are always posted in the actual. They are only posted in the plan when integrated planning is active with cost center accounting

[Former Member]

Dear Mr Thiyagarajan/ Mr Amit,

I am having a issue and request to clarify pl.

1.In the Planned cost of MO,Sytem is picking the standard

price of Material.

Eg For Material X,MAP-23 and Standard Price-25.If I plan

the material 1pc in the MO and in the cost tab,under

Planned cost its showing 25.How to make the system to

calulate the planned cost based on MAV instead of STD

price.

2.When ever I plan for any material,in the planned cost of

COST tab,Iam getting Material Cost as well as Overhead

cost (with 10%).How to remove this autocalculation.

Once agian ,I request Mr Thiagu/Mr Amit to clarify pl.

Regrds

KRISHNAN

[Former Member]

hi,

Raman,

sorry for delay reply...

this is very simple...

1. to get MAP for material go to the appropriate valvuation variants and there u will find tab page Material

just set MAP there from drop down menu....

just do this one and after that we will discuss overhead cost

Regards,

amit

[Former Member]

hi,

overhead charges are always calculated in percentage of planned/actual cost

basically these are the mangement charges.. for exam electricity cost, Stationary cost during maintenance job.

there are two types of overhead is used in order

1. planned overheacd - system will calculate according to the formula , whatever has been set in customizing. actuaally this is the some percentage of planned cost.

2. Actual ovehead - this kind of overhead must be calculated manually.... by fi/co people... SAP Never recommonde calculattion of actual over head automatically

i hope it will clear ur doubts.

[Former Member]

Hi Amit

This is about actual overhead....

Can you give me some reference (may be some link) where it has been recommended by SAP to calculate actual overhead manually and how can it be done.

It could be of great help.

Regards

Nalin

[former_member187991]

hi

you can use KGI2 or KGI4 to calculate the actual overhaed for the order .after calculating you can find the actual overheads in the order

This must be done after all the operation and material consumption have been done

regards

thyagarajan

[Former Member]

most of the time actuall overhead is calculated by finance department with the help of pm guys....

please refer . t.code what tyagrajan ji told.

[former_member187991]

hi

Overheads are secondary cost which are used for manufaturing a product.normally apart from your internal activity and material cost some percentage of cost will be occured due to some other reason,(like freight,storage)

Overhead cost will be calucalted based on your costing sheet ,in that you will be specifying how much percentage of overhead should occur ie 10% on material etc

regards

thyagarajan

[Former Member]

Hi Thyagarajan

Thanx for the reply...

i need one clarification....for material the freight charges are included under Moving Average Price....then why overhead charges are calculated for material in main order?

Regards

Nalin

[former_member187991]

hi

It is not the freight alone i just said as example there are other surchages,storage charges etc .for detail have a look here

http://help.sap.com/saphelp_46c/helpdata/en/7e/cb814443a311d189ee0000e81ddfac/content.htm

regards

thyagarajan