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Define Quantity-Based Overhead Rates

Hi experts,

I know how can I define quantity based overhead rates : i create an "overhead rate" with dependency "Majoration Type/responsable cost center", and finaly i enter a cost center, but it obliges me to enter an amount.

My problem is that I don't want to enter any fix amount, i need just to indicate the cost center, then when i execute CK11N it must to take all of costs of the cost center.

What I am trying to do exactly is :

Charging OH on 3 materials in CK11N : the OH is the amount taken automatically from the cost center "advertising" which changes monthly.

My problem it's because i don't know how can i distribute all the amount of cost center according to the quantity of the materials produced (standard cost) :

Example :

I want to produce 3 materials :

X = 100 KG

Y = 400 KG

Z = 500 KG

If the OH is 100 000 € , normaly the OH has to be : 10 000 € for X, 40 000 € for Y, and 50 000 for Z.

Actually the system takes all the amount 100 000 € which is entered manually (this solution requires changing this amount monthly) and charges it on materials in CK11N like this :

X = 100 000 € for 100 KG produced

Y = 100 000 € for 400 KG produced

Z = 100 000 € for 500 KG produced

Need help plz !

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1 Answer

  • Posted on May 07, 2012 at 12:12 PM

    Ideally you should use Template Allocation for output based Overhead...

    A workaround to Template is to create an Activity Type for Overhead with EA as UoM... Add this in your Work center and Routing and maintain the Activity Qty same as Operation Qty i.e. If Routing is created for 100 Units, maintain the Activity Qty as 100

    Now when you confirm the actual production, same amount of activity qty gets confirmed

    At Period end, you can calculate an activity price, which will reflect 100,000 / Total Qty produced

    br, Ajay M

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