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Entering content frameFunction documentation Actual Overhead in Cost Object Controlling 

Use

Overhead calculation enables you to apply overhead to your cost objects in your actual data.

Overhead can be applied in simultaneous costing or in final costing.

You can use overhead calculation in Cost Object Controlling for all cost objects in the R/3 System:

  • Production orders
  • Process orders
  • Product cost collectors
  • Cost object nodes in cost object hierarchies
  • Sales document items
  • General cost objects
  • Internal orders

You can use overhead keys to calculate different overhead rates for different objects (such as the material being manufactured).

Integration

You can use the Schedule Manager to assist you in performing the period-end closing activities. For more information, refer to the following sections:

Scheduler

Monitor

Flow Definition

If you use the Schedule Manager with the flow definition, you can use the multilevel worklist to reprocess the faulty objects. For more information, see the following section:

Multilevel Worklist

Note

You cannot use the multilevel worklist in Product Cost by Sales Order (for the sales order item).

Prerequisites

You must define a

costing sheet in Customizing for Product Cost Controlling.

To specify separate overhead conditions for particular semifinished or finished products, you can also enter an overhead group in the master record of the material being costed, and enter an

overhead key in the costing sheet in Customizing for Product Cost Controlling that is linked to that overhead group.

To allocate overhead to manufacturing orders, product cost collectors, and sales order items, you assign the costing sheet to a valuation variant. You then assign the valuation variant to a costing variant.

The valid costing sheet for overhead calculation in period-end closing is selected as follows:

  • Manufacturing orders

The system uses the costing sheet specified in the manufacturing order. This costing sheet is defaulted into the manufacturing order through the valuation variant specified in the costing variant planned.

  • Product cost collectors

Costing variant for preliminary costing:

For product cost collectors, the planned costing variant (for preliminary costing) and the actual costing variant (to determine overhead rates in period-end closing) are determined through the default values of the order type.

The costing sheet in the master data of the product cost collector is selected through the default value for the planned costing variant in the order type:

This costing variant is linked to a valuation variant.

From the valuation variant, the system determines the default costing sheet and transfers it into the master data of the product cost collector.

The costing sheet transferred into the product cost collector is used to calculate the overhead rates for preliminary costing, as well as the actual overhead rates.

If no default values for the planned costing variant exist, the system selects the costing sheet using the default values of the actual costing variant. The selected costing sheet is transferred into the master data of the product cost collector and can be changed there.

  • Sales document items

For information, see:

Overhead in Sales-Order-Related Production

You have already performed the following period-end closing activities in the relevant application component (such as Product Cost by Period) if applicable:

  • Template allocation
  • Revaluation of activity types and business processes at actual prices

Overhead Calculation in Product Cost by Period and Product Cost by Order

To be able to apply overhead to material-based orders (such as production orders, process orders, or product cost collectors), you must enter the key of the costing sheet in the valuation variant and choose a costing variant that is linked to that valuation variant.

You specify the costing variant for manufacturing orders and product cost collectors in the order header. You can specify the Costing Variant Actual as a default value the following places in Customizing:

  • In Customizing for Product Cost by Period under Product Cost Collectors ®
Define Default Values for Order Types
  • In Customizing for Product Cost by Order under Manufacturing Orders ® Define Default Values for Order Types (PP and CO)
  • For cost object nodes in cost object hierarchies you specify a costing sheet and if applicable an overhead key in the master record of the cost object.

    You can specify a default costing sheet and an overhead key in Customizing for Product Cost by Period under Cost Object Hierarchies

    ® Define Cost Object Profiles for Cost Object Hierarchies. These default values are only active if the Overhead indicator in the cost object category is selected.

    If you want to allocate overhead to orders or product cost collectors and are using cost object hierarchies, go into Customizing for Product Cost Controlling and turn on the Distribution indicator in cost object category.

    In actual cost distribution, the calculation of the overhead is controlled by the costing sheet and in some circumstances by the overhead key in the order master or in the product cost collector.

    If the distribution function is not turned on in the cost object category, you can calculate overhead both for the cost object nodes in the hierarchy and for the assigned orders.

    Overhead Calculation in Sales-Order-Related Production

    Overhead calculation in sales-order-related production involves a number of special features.

    For information, see:

    Overhead in Sales-Order-Related Production

    Overhead Calculation in Costs for Intangible Goods and Services

    You enter a costing sheet and (if applicable) an overhead key in the master record of the general cost object.

    You can specify a default costing sheet and an overhead key in Customizing for Costs for Intangible Goods and Services under Basic Settings for Costs for Intangible Goods and Services

    ® Define Cost Object Profiles.

    Features

    Overhead costs are allocated to the cost objects based on the quantity or as a percentage of the direct costs.

    You can also simulate overhead allocation (test run).

    You can post the actual overhead on the last day of the period, or specify a different posting date. The posting date must lie within the period for which overhead is calculated.

    Improving Performance

    You can run the settlement process with parallel processing to reduce the runtime of the overhead calculation process.

    • If you perform overhead calculation outside the Schedule Manager, enter a server group for background processing.
    • If you perform overhead calculation using the Schedule Manager, set the parallel processing indicator in the selection screen of the program when you create the job variant. An entry field then appears in which you enter the server group.

    Schedule Manager: Multilevel Worklist

    You can view and edit the objects with errors that were processed with the individual functions. You use the multilevel worklist for this purpose. The multilevel worklist enables you to edit the faulty objects of an individual processing step (that is, a single function) or of an entire processing step sequence.

    A prerequisite for the multilevel worklist is that you are using the Schedule Manager in conjunction with a flow definition.

    See: Integration in this section.

    See also:

    Overhead

    Overhead Allocation

    For more information on the required settings in Customizing, refer to the Implementation Guide (IMG) for Product Cost Controlling.

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