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Former Member
Jan 22, 2011 at 08:57 PM

Mapping Cost centers cost with Cost sheet

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Hi CO Gurus,

I am unable to understand the process of how all the Cost centers cost is allocated to the product monthly so that nothing is left in that cost center for that particular month.

For eg: Lets say i have 10 Production cost centers and 10 Non Production cost centers.

For a Particular month, i have produced 100 pieces of Finished goods.

Now if i have an amount of 1 million in the Production cost centers and 0.5 million in Non production cost centers, the complete amount is to be allocated to the product of 100 PCS and simultaneous credit should be assigned to all the cost centers which makes the cost centers to zero. Though this is not practical, but still this should happen.

Production cost is allocated to Product through Activities and similarly non production cost centers cost is allocated to Product through Cost sheet.

Now my question is, all the 10 non production cost center, will not be included in the cost sheet as only admin or S&D cost center is assigned generally.

How the other 8 cost centers cost will be allocated to the product.

Can you please give me an clarity on this so as to understand the process perfectly

Thanks & Regards,

Ravi