Overhead on projects

[former_member229531]

Hi All,

have couple of questions regarding overhead and material costs postings to projects.

1.Where did you assigned cost sheet?to WBS or Network?please help me.

2.Where do you post your materials costs?to network or WBS?

3.where do you settle production order on project? to WBS or to Network?

any help is appreciated.

Thanks,

Anusha

[former_member214674 · Accepted solution]

Hi,

Costing sheet can be assigned to wbs elements directly in contolling tab or it can be maintained in project profile. So whenever you select your project profile at the time of project creation, it will get selected automatically.

Materials cant be directly assigned to WBS...they are linked to NWA and NWA linked to wbs elements. whenever you raise PR that will have to convert into PO. And aginst that PO..GR/IR would happen.

In case of Production Order, you can maintain settlement rule...on the basis of settlement profile..and make wbs element as receiver.

Regards

Edited by: Abhinay Gautam on Sep 4, 2008 5:12 PM

[Former Member]

Hi,

1. You can assign costing sheet to network or WBS. Costing sheet for WBS gets defaulted from project profile and that of network from network profile. Activity picks up costing sheet for overhead calculation from network and if not maintained there gets it from WBS.

2. If you are using network activities, issue of material to activity ie consumption leads to material cost. Alternatively you can also consume material against WBS. Depends on ur business requirement.

3. Production order will be settled to WBS, not network and further to cost center related to production.

Regards

[former_member229531]

Hi Shrikant,

Thanks for your reply..

Currently we are applying overheads to all production orders (ETO,MTO and ATO).

if i want to apply overhead raw material deirectly issued to project and same time i would like to eliminate raw materail issued to production order,how can i achieve this.?

one more question is when we settle production order,actual costs will settle to project,how this settle as semi finished or finished material costs or raw material costs,labor and other costs?

Any help is appreciated.

Thanks,

Anusha

[Former Member]

Hi,

There is a correction reg point 3. Production order will get settled to material. The entire cost will be updated as standard price in material master. When you issue this material to activity, cost will come to project. In the settlement to material you can control which costs to be settled or which not.

Regards