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Former Member
Aug 19, 2010 at 12:23 AM

Product Costing-Overhead inclusion in Inventory standard cost without PPV


Dear Friends,

I have a requirement to include overhead cost in standard price of the material where only component is material cost which is purchased from oustide and sold without any operation so there is no routing or production order. It would be possible to load ovrehead cost along with material cost to include it in standard price of the material. But when overehead is included in standard price, when ever material is purchased, the difference between standard price and PO price will be posted as Purchase price variance. The overhead portion included in the standard price will distort value of Purchase price variance (PPV). Is there any option available in SAP which can allow loading overhead cost in standard cost of the material without affecting PPV value?

Thanks and regards,