Product Cost Planing (Overhead calculation)

[Former Member]

Dear experts,

I am trying to do standard cost estimate in CK11N.

The scenario is there are two types of material which are used to produce a product.

example, Material A and B is needed to produce Material C.

I have maintained procurement type E in the material master C.

The moving avg price for Material A is Rs 500 and moving avg price for Material B is Rs 1000.

I have included both the material in the relevant BOM for material C.

When I run Standard cost estimate it gives me

Cost of Good manufacture 1500

Cost of goods sold as 1500

Issue:

I wanted to include the overhead cost in the Cost of production of material C. Which does not

seem to be happening. Any check that I can do to find the exact problem?

The costing sheet has been assigned with the right overhead rates and its linked to the costing variant.

Please let me know if in particular i need to check to trigger the problem.

Paul

[ajaycwa1981 · Accepted solution]

Hi

1. Check the BASE of your costing sheet.. Which Cost elements have you specified as the BASE? Do these cost elements appear in your CK11N itemization

2. Have you defined Credit key in costing sheet with Catg 41 cost element?

3. Check if your overhead rates are maintained in KZZ2 or KZM2 (As applicable) with a proper validity date

BR,Ajay M

[Former Member · Accepted solution]

Hi Ajay,

Thank you for your input.

1. Check the BASE of your costing sheet.. Which Cost elements have you specified as the BASE? Do these cost elements appear in your CK11N itemization

The cost elements that I have mentioned as base does not exist in CK11N itemzation

2. Have you defined Credit key in costing sheet with Catg 41 cost element?

Yes, and I have used the cat as 41

3. Check if your overhead rates are maintained in KZZ2 or KZM2 (As applicable) with a proper validity date

Appears to be valid fro 01.01.2011 to 31.12.2011

BR,Ajay M

[Former Member · Accepted solution]

Hi Ajay,

As Base I have mention the Primary cost element which is used as consumption account. Like Raw mat consumption account.

Hope it correct.

Regards

paul

[ajaycwa1981 · Accepted solution]

Hi

Yes, it is right... Maintain overhead rate at relevant place and run Ck11N... You should see overheads calculated in it

BR, Ajay M

[Former Member · Accepted solution]

Hi Ajay,

As a matter of understanding, the amount on which the overhead percentage should be calculated is based on the material issues as consumption for a PARTICULAR ORDER. Am I right?

Paul

[ajaycwa1981 · Accepted solution]

Hi Paul

yes you are right...

In case of Std cost estimate - It is the BOM Qty multiplied by price as per valuation variant

In case of actuals - The amount of raw materials issued to prod order

Kindly close the thread if your query is addressed

BR, Ajay M

[Former Member · Accepted solution]

Many thanks for your inputs

[Former Member]

hi..

Can you please check your Sec Cost element Cat for OH. it should be 41.

kkumar

[Former Member]

Hi,

The Sec Cost element Cat for OH is 41

Paul