Overhead (SAP Library - Product Cost Controlling)

Overhead

This section tells you how to define all the parameters which determine the calculation of overhead rates for cost centers (including activity types), business processes, orders, projects, products and such like.

Overhead rates are used to pass on costs to cost centers that do not directly reference the activity used. Thus you can, for example, distribute the costs from a warehouse cost center to orders for which material was taken from the relevant warehouse.

Overhead costing differs from internal activity allocation in that you cannot express cost center output in quantities. Instead, the costs for the cost center are passed on via overhead rates to the cost centers (including activity types), orders, projects products, and so on.

The tracing factor for the overhead costing can be either the amount of particulardirect costs (such as direct material costs for a production order) or a total of direct costs and overhead cost of goods manufactured.

You can also calculate percentage or quantity-based overhead rates, which lead to an actual credit being posted to a cost center and a debit to the order, project etc.

You can use this function to calculate both plan and actual overhead, rates, and overhead rates for commitments (business processes do not use commitments).

Plan overhead rates are determined as part of cost center planning, business process planning, order planning, preliminary costing , project planning, product costing or unit costing.

Actual overhead rates and commitment overhead rates are calculated as part of period-end closing based on the actual costs incurred or the commitments set up.

The parameters for overhead costing are summarized in a costing sheet . Overhead costing is only carried out for objects, for which a costing sheet is maintained. (See IMG activity Define Costing Sheet)

For cost centers, you enter the costing sheet in the master data of the cost center.

For business processes, you enter the costing sheet in the master data of the business processes.

For internal orders and production orders without quantity structures, the costing sheet can be referenced from a model order.

For production orders, process orders, product cost collectors, maintenance orders, maintenance orders and service orders, you default the costing sheet using a valuation variant.

For projects, you enter the costing sheet in the project profile.

For products, you select the costing sheet using the valuation variant.

ForCost object-ID numbers you default the costing sheet using the cost object profile.

For sales document items, you default it using the requirements class.

Standard Settings

The standard SAP system contains various costing sheets, which you can use as reference models for defining your own costing sheets.

To work with these costing sheets, you need to:

Ensure that all the relevant cost elements are in the calculation bases

Check the conditions for overhead calculation

Include the cost centers or overhead cost orders for your company in the credit keys

Ensure that the costing sheet is defaulted in master data maintenance

If the preconfigured calculation bases, overhead rates and credits are not enough for your requirements, you can create new ones or change the existing ones.

The SAP standard system contains the following costing sheets:

A00000 Standard

You can use this costing sheet to determine material, production, administration and sales overhead. The conditions in the sheet are controlling area -dependent. In this sheet, you can determine plan, actual and commitment overhead.

A00001 Standard 1/overhead key

You can use this costing sheet to determine material, production, administration and sales overhead. The conditions for the overhead determination are dependent on the overhead keys you enter in the orders, projects and so on. This means that you can create separate keys for each project or for particular products or orders. You can determine plan or actual overhead.

A00002 Standard 2/Plant

You can use this costing sheet to determine material, production, administration and sales overhead. The conditions in the sheet depend on the plant . You can determine plan or actual overhead and can use this sheet as the base for entering different overhead conditions for each plant in your business.

A00003 Standard 3/Company code

You can use this costing sheet to determine material, production, administration and sales overhead. The conditions in the sheet depend on the company code . You can determine plan or actual overhead and can use this sheet as the base for entering different overhead conditions for each company code in your business.

A00004 Standard 4/Business area

You can use this costing sheet to determine material, production, administration and sales overhead. The conditions in the sheet depend on the business area . You can determine plan or actual overhead and can use this sheet as the base for entering different overhead conditions for each business area in your business.

A00005 Standard 5/Order type

You can use this costing sheet to determine material, production, administration and sales overhead. The conditions in the sheet depend on the order type . You can determine plan or actual overhead and can use this sheet as the base for calculating overhead dependent on the purpose of the order (capital investment measure, production order, service order).

A00006 Standard 6/Order category

You can use this costing sheet to determine material, production, administration and sales overhead. The conditions in the sheet depend on the order category. You can determine plan or actual overhead and can use this sheet as the base for calculating overhead in orders, to make overhead conditions dependent on the technical character of the order (PP order, PM order etc.).

PP-PC1 PP-PC Standard

You can use this costing sheet to determine material and production overhead. This sheet is usually used to determine the production costs for a product. The conditions in the sheet depend on the controlling area. You can determine plan, actual and commitment overhead.

PP-PC2 PP-PC Overheads on cost of goods manufactured

You can use this costing sheet to determine material, production, administration and sales overhead. This sheet is usually used to determine the cost of goods sold for a product. The conditions in the sheet depend on the controlling area. You can determine plan, actual and commitment overhead.