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Use

Overhead costs are costs which can only indirectly be attributed to the product, such as electricity or general storage costs. You can allocate these overhead costs in the following ways:

In the conventional method, overhead is applied to the reference object as a percentage rate or a quantity-based rate. The overhead is applied by means of costing sheets.

Here, cost drivers are used to assign overhead to the reference object on a source-related basis according to usage. The overhead is applied by means of templates. Sender objects can be business processes or cost centers/activity types.

Assigning process costs to routing operations is particularly suitable for direct production processes. On the other hand, indirect processes should be assigned using templates.

Integration

Overhead is assigned from Financial Accounting (FI) to the cost centers in Cost Center Accounting (CO-OM-CCA). If you use Activity-Based Costing (CO-OM-ABC), overhead is passed on from Cost Center Accounting to the business processes of Activity-Based Costing.

The overhead costs are in turn passed on from Cost Center Accounting or Activity-Based Costing to Product Cost Controlling (CO-PC).

You can transfer the costs from Cost Object Controlling to the following:

You can pass on overhead costs that have not been applied to a cost object (such as sales and marketing costs) directly from Cost Center Accounting or from Activity-Based Costing to Profitability Analysis.

Features

You can calculate both planned and actual overhead costs. You can also apply overhead to process costs. You can use overhead calculation for all the cost objects in the R/3 System.

You can calculate planned overhead costs in the following:

You can calculate actual overhead costs at period-end closing in Cost Object Controlling based on the actual costs or quantities incurred thus far.

For more information about calculating overhead in manufacturing orders, product cost collectors, general cost objects, and sales order items see the following sections:

For more information about calculating overhead costs, see the following sections in the R/3 Library:

 

 

 

 

 

 

 

 

 

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