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Former Member

Calculation of machine setup cost?

Hello Friends,

I wanted to know that how machine setup cost is calculated under activity based costing in SAP.

I have machine wise setup cost per hour but if I update that cost in routing, it only allocates to that first order or product which comes after setup. It results me into higher cost on that particular products.

If I allocate cost by taking base of cycle time like depreciation cost is calculated then how SAP will take cost if machine setup is done more than 1 time in a month?

Or suggest me best way to calculate setup time and its unit of measurement.

Thank you!

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