overhead in costing sheet and cost component struc

[Former Member]

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

[gautham_gopalan · Accepted solution]

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

[Former Member · Accepted solution]

Hi,

1 Actual overhead run is KGI2, correct?

2 But when run CK11N or CK40N, i will get a new cost in MM03. This cost also included overhead. So what will be the difference of production order overhead and overhead which is part of the material cost in MM03?

Thanks

[venkatasatyakrishna_achan · Accepted solution]

hi

standard cost is just an estimate as its not actually incurred it will not make any entry to the production order or cost center.

krishna

[Former Member · Accepted solution]

Hi,

For standard cost will show in MM03 after costing run. Standard Overhead part of the standard cost.

standard overhead also show in production order cost analysis under column planned.

For actual KGI2 which will credit cost center and debit prod order.

Correct?

[gautham_gopalan · Accepted solution]

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,

[venkatasatyakrishna_achan]

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

[Former Member]

Hi,

1 Meaning the time I run ck11n or ck40n, then the overhead will be calculated and debit to the cost component structure and credit the cost center defined in costing sheet. Correct?

2 May I know the debited overhead will go to which component?

material component, general overhead component, material overhead component in cost component structure.

thanks

[venkatasatyakrishna_achan]

hii

while calculating standard cost nothing will debit or credit it only calculates. only actual overhead calculation will debit the cost centers.

krishna