Basic Settings for Material Costing (SAP Library

Basic Settings for Material Costing

Here you make general settings for cost estimates with and without quantity structure:

Define origin groups

In this step you can specify how materials that are assigned to the same cost element are controlled separately for the purposes of overhead allocation. This allows you to apply overhead to direct costs by cost element and origin rather than only by cost element.

Overhead

In this step you create overhead groups for each valuation area and assign these groups to overhead keys. You can differentiateoverhead rates according to the materials to which overhead is to be allocated by entering an overhead group in the material master record of the product being manufactured and specifying the overhead key in the costing sheet.

Process costs

In this step you can use Activity-Based Costing to allocate overhead as an alternative to the conventional method.

Define cost components

In this step you define the

cost component structure and the cost components

Check settings

In this step you can check the Customizing settings by specifying a costing variant.

Error management

In this step you make Customizing settings for message management.