Overhead rates are used to pass on those cost center costs that are not directly related to the activity quantity that has been consumed. This enables you to distribute the costs of a given cost center to the orders on the basis of direct costs or overhead (indirect) costs.
In addition to defining percentage-based overhead rates, overhead cost controlling also lets you define quantity-based overhead rates in the plan, actual, or for commitments.
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Process Chain
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Defining the Costing Sheet
Calculating Actual Overhead
Displaying the Allocated Overhead Costs in Order Reports