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Basic Settings
for Product Cost by Order
Here you make general system settings for the
Product Cost by Order component, such as the following:
In this step you
create keys to separate materials assigned to the same
cost element . This allows you to apply overhead for each cost
element and origin, rather than just for each cost element.
In this step you
create overhead groups for each
valuation area and assign them to overhead keys. You can
categorize
overhead according to the materials to be costed by entering an
overhead group in the material master of the product to be manufactured and
creating conditions in the
costing sheet that refer to the overhead key.
In this step you
create
costing sheets . A costing sheet determines how your company's
overhead is charged.
The costing sheet determines
- whatdirect costs overhead is applied to (such
as material costs or production costs)
- under what conditions overhead is calculated
(such as for each controlling area or plant)
- the amount of the percentage or quantity-based
overhead, depending on these conditions
- what object (cost center, order) is credited,
and under what cost element, when actual costs are posted.
If you want to use
template allocation in Product Cost by Order, create a template that can be
applied in the planning and allocation of activity types and business
processes.