Overhead

[Former Member]

Hi,

I want to understand, whether it is mandatory to execute transaction of u2018Over head calculationu2019 before going for settlement?

I mean to say, as we have defined base for u2018Over headu2019 like Material/Labor & we have assigned the costing sheet to u2018Order typeu2019. At time of actual confirmation as activity price, material price get booked against order, Canu2019t over head cost get booked automatically? Or always we will have to do it periodically?

Thanks,

Harsh

[Former Member]

Hi.

We need to run overhead run Tcode KGI2 or CO43 before settlement to calculate overhead cost. Overhead cost is normally on labour, machines etc....

So at the time of confirmation we can capture exact cost required for labour or machine with activity cost. But to calculate overhead it is not only sufficient to have a costing sheet. Costing sheet will only provide base value for overhead costing run.

In overhead costing run it will take values from order confirmation & values maintained in costing sheet.

Hope this will help you.

Regards,

Ashish

[Former Member]

Hi,

From your reply it looks like it is mandatory to carry out Over head transaction before settlement.

What I would like to know, when at time of confirmation activity price & material price get posted automatically we didnu2019t required to run separate transaction for that then why in case of over head it requires because we use to defined the base & through valuation variant we are assigning related config to order type then why it didnu2019t post automatically (as per your reply)? Why need to run separate transaction?

Thanks,

Harshad

[rupesh_brahmankar3]

Dear,

You should follow following steps for Order Settlement after confirmation :

1. After Final Confirmation of Order ( Status : CNF) make GR for for order using Tcode : MIGO / MB31 so Production Order Status will be DLV.

2. Then complete the order technically by using Tcode : CO02--> Functions ( Menu)---> Restrict Processing -

---

> Technically Complete. You can carry out TECO for multiple Orders in Tcode : COHV (Mass Processing).

3.Now Calculate Overheads using Tcode : KGI2 - Individual Processing

CO43 - Collective Processing

4.Calculate WIP using Tcode : KKAX - Individual Processing

KKAO - Collective Processing

5.Calculate Variance by using Tcode : KKS2 - Individual Processing

KKS1 - Collective Processing

6.Finally do the settlement of Order in Tcode : KO88 - Individual Processing

CO88 - Collective Processing

Hope this helps.

Regards,

R.Brahmankar