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overhead in costing sheet and cost component struc

Hi,

The costing Sheet tells the "Overhead costs" that i can add up to whatever on the componet structure?

Say I have material component, general overhead component, material overhead component in cost component structure.

I also have material as base/overhead/credit defined in costing sheet and I count 10% being the material overhead in costing sheet.

Now, the 10% will be recorded in material overhead component. Correct? How can the system know to link to material overhead component in cost component structure?

Thanks

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  • Best Answer
    Posted on May 01, 2012 at 05:39 AM

    HI,

    In costing sheet there are three componenets

    the Base , Overhead % and Credits

    The base will be your Material consumption GL's

    The Overhead Will be applied to the base (1 - plan and 2 - Actual)

    The credit will be the cost centres you want to credit.

    The Planned Overhead will get calculated during running std cost estimate

    but only when you run Actual Overhead run the Overhead will Dr. the Production Order and Cr. the Cost centre

    suppose you have defined Admin O/H as 5% ..it will calculate 5% of the base

    (which might be Direct costs + Factory O/H)

    finally it depends upon the costing sheet....

    Regards

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    • Hi,

      Overhead gets calculated in std cost estimate based on planned O/H rate i.e. O/H type 2

      This O/H cost forms part of std cost estimate which you release and the std price gets updated in material master MM03

      Also when you maintain OH rates i.e O/H type 1 actual overheads will get calculated when you execute KGI2...and it will Dr. Production Order and Cr. Cost Centre.

      Regards,

  • Posted on May 01, 2012 at 02:27 AM

    hi

    when u calculate the overhead through cost sheet, there u will be crediting the cost center with overhead cost element of 41 category. the cost elements will be assigned in the cost component structure.

    so when the standard cost estimate is calculated is represented based on the cost component structure

    krishna

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