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Former Member

Overhead cost calculation

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

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4 Answers

  • Posted on Mar 20, 2008 at 07:37 AM

    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

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 20, 2008 at 09:11 AM

    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.

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 24, 2008 at 04:56 AM

    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

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    • 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

  • author's profile photo Former Member
    Former Member
    Posted on Mar 24, 2008 at 10:34 AM

    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

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    • 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

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