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Cost Sheet Explanation


I have some doubt abt Cost sheet, request to please help me to understand cost sheet properly.

1 What is the exact use of Bases we define in Cost sheet line row.

2 What is exact use of Credite defined in Cost sheet.

Thanks & Regards,

Hari Gore

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 16, 2009 at 01:26 PM

    Base: Base determines the costs on which the material overhead is to be applied. If we click on the row xxx it gives cost elements

    The cost elements in the base refer to the material consumption accounts for materials.

    Credits : This field refers to the cost center to which the overhead gets credited.

    The cost center assigned xxx would receive the credit with the material overhead calculated on the production order and the production order would receive the debit.

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 16, 2009 at 02:50 PM


    The details are entailed as below:

    Calculation Base: In this IMG activity you define a calculation base for overhead costing. The calculation base determines to which cost elements overhead is applied together.

    For each controlling area, you assign individual cost elements or cost element intervals, or origins or origin intervals, to the calculation bases.

    For production overhead costs, you can differentiate between fixed and variable costs for the calculation base. In this way, you can charge the fixed and variable portions of the activity price differently for activity types.

    For material overhead costs, you can differentiate the materials used. If you want to define different material overhead costs for particular raw materials, you can define origin groups and define your own calculation bases for particular origin groups.

    Credit Key: Cost allocation is part of the process of determining overhead rates. If this leads to an object being debited with actual costs, another object in Cost Accounting must be credited at the same time. This can be either a cost center, order or a business process. This type of posting is recorded under a secondary cost element of cost element category 41 (overhead rates) in the SAP System.

    When you define credits, you also specify which credit object is to be credited under which cost element when overhead is to be applied to an object in the actual.

    You can also define what percentage of the overhead is to be allocated as fixed costs.


    To define a credit, proceed as follows:

    1. Choose New entries to create a new credit.

    2. Enter a three-character key and a name for the new credit.

    3. Select the row and choose "Detail".

    You have the option of entering credit definitions that contain the following:

    A validity period

    An overhead cost element

    The overhead cost element must have cost element category 41.

    An origin group

    You must specify an origin group if you want to see both the overhead cost element and the origin of the overhead in cost accounting

    The percentage of the overhead to be allocated as fixed costs.

    "*": The fixed portion of the costs is determined in the same way as the portion of fixed costs for the debit object.

    A credit object

    You can enter either a cost center or an order, or a business process as a credit object, but not more than one at the same time.

    4. Save your entries.



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