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Over absorption in service cost center

Hi experts,

When I check cost center plan actual variance report I found the over absorption of 10,000 in a service costcenter, after run the assessment cycle the cost from the service cost center is distributed to respective secondary assessment cost elements but why 10,000 more absorbed to assessment cost element, I checked in the assessment cycle structure everything is fine the receiver rule is variable portions, atual activity and no scaling, and also in receiver weighting factor activity type has been maintained, actually how the absorption will happen in case of service cost centers plesae explain me what is the role of activity type in the cycle. when the cost is transferred to production cost center and how.

Plesae explain meu2026u2026u2026u2026

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  • Best Answer
    Posted on May 22, 2011 at 03:00 PM

    Whether a single assessment cycle is related to that particular cost center. Check the credits coming to the cost center.

    In the assessment cycle check the portions is equal to 100%.

    Activity type in the receiver rule relates to the tracing factor accoring to which the cost will be distributed in the receiver production cost center where this acitvity is getting confirmed.



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    • Hi Ravi,

      When you are choosing actual activity as the receiver tracing factor for the 4 prod cost centers then actual quantity of that acitivity booked on those cost centers should be existing.

      You are testing in development server in the current period I hope where the relevant data may not be available. Check the activity defined in the assessment cycle is actually booked on those production cost centers for the period you are running the assessment cycle.

      Also note KP26 is for maintaining plan price for an activity it is no where related to assessment cycle.



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