Over absorption in service cost center

[Former Member]

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

[former_member588855 · Accepted solution]

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.

regards,

Divraj

[Former Member · Accepted solution]

Hi,

The assessment cycle consists of total 48 segments, this cost center is repeated in some other segments also but the thing is assessment cost element is unique for this cost center, why the more cost is distributed to assessment cost element in service cost center and also on what basis cost will distributed to production cost centers.

[former_member588855 · Accepted solution]

Hi Ravi,

Assessment cost element is the basis of distributing the cost from one cost center to another. What actually gets transferred is the cost elements defined in the sender/receiver rule.

The possible reason is that same cost element is defined for the cost center in any other segment due to which over absorption is coming. Check the segments thoroughly.

CLICK ON FORMAL CHECK BUTTON (CTRL+F12) TO CHECK WHETHER THE ASSESSMENT CYCLE IS OK OR NOT.

Regards

Divraj

[Former Member · Accepted solution]

Hi Divraj,

The same issue i am replicating in the development server i created one assessment cycle i gave one service cost center as sender and one cost element group, the group contains 10 primary cost elements(GL's), i done postings with 10 gl's respect to this service cost center, in my assessment cycle i gave one assessment cost element in segment header the sender rule is posted amounts, the receiver tracing factor contains variable portions, actual activity and no scaling, in receiver i gave cost center group contains 4 production cost centers, sender values is share in 100%, version is zero the receiver tracing factor tab contains variable portions as actual activity and one activity i maintained, the receiver weighting factor contains 4 production cost centers and factor percentage is 100%.

Now i execute the assessment cycle in KSU5 i am getting senders in cycle but receivers i am getting zero, when i took the actual activity, variable portions and no scaling i have to maintain activity price in KP26 and this cost center i have to maintain in process order that is fine please explain me how the cost will distributed to production cost center please explain the procedure in detailed.

Hopefully i will get clarity on the concept................

[former_member588855 · Accepted solution]

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.

Regards,

Divraj