Calculation of Overhead Rate

[former_member588855]

Dear All,

We have defined overhead % based on Raw materials consumed on production order.

Now in period end we have to calculate the % of actual overhead booked on cost center based on consumption of raw materials on order. This actual rate we maintain in KZZ2.

This task the user is finding a tedious job as there are 4 such overhead rates are to be calculated for different order types.

Any workaround can be suggested.

Does the only possible solution is to develop a z report for it.

Regards,

Divraj

Edited by: Divraj Agarwal on Jul 4, 2011 9:09 AM

[ajaycwa1981 · Accepted solution]

Hi

If you wanna continue using the % mechanism, then there is no option available.. You need to develop a Z report

What I prefer to do is this:

1. Absorb overheads based on machine hr or labor hr basis depending on whether the client's business is Labor intensive or Machine intensive.. You may also want to absorb based on Output

2. Create and maintain new Act Type for overheads in Routing...The activity Qty of this act type in the routing can be

a. Same as Machine hrs

b. Same as Labor hrs

c.. Same as Operation Qty

You need to choose any one of these based on the decision you make in 1 above

3. While confirming the PP team to confirm the same qty as in machine hr or Labor Hr in the new act type...

In case of overhead based on output, system would automatically propose the Act Qty = The Confirmed qty...

4. Calculate act price for the new act type.. It will be as good as manually calculating the Overhead rate and maintaining in KZM2

br, Ajay M

[former_member588855 · Accepted solution]

Hi Ajay,

Thanks for the reply.

Introducing in routing will be difficult as there are 5000 materials existing and to explain the same to production people will be more difficult.

We are maintaining percentage overhead rate not quantity based overhead rate.

Can this be resolved through report painter. If yes can you guide me to do the same as presently I m not so comfortable with report painter.

Regards,

Divraj

[ajaycwa1981 · Accepted solution]

Hi

I cant say whether report painter will address your concern or not, because I dont know how your data flow is designed and how the values are posted...

RP can be used only when its a pure extraction of data from CO Tables with simple arithmetical calculations of Addition, Sub, Multi and division... All this can be done in GRR1 using a suitable CO library

If thats not the case, you need to use ABAP report

You can also try to explore Template allocation of overheads, which is again auto allocation of overheads

br, Ajay M

[former_member588855 · Accepted solution]

Hi Ajay,

I have to calculate % of cost elements booked in cost center based on RM consumption on orders.

Cost center data is stored library starting with 1 and order data is stored in library starting with 7.

Interrelation of two library will be required.

One friend of mine has suggested to use table FAGLFLEXT to prepare the report in RP.

Kindly advice. If possible process flow also.

I have not worked with template allocation. I wiil search for documentation on the net. If you have any link kindly provide.

Regards,

Edited by: Divraj Agarwal on Jul 5, 2011 9:38 AM

[ajaycwa1981 · Accepted solution]

Hi

Using Library 0FL try to prepare a report and see if it serves your purpose

br Ajay M