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Define Percentage Overhead

An overhead rate specifies the conditions under which overhead is applied to an object.

In this IMG activity you define percentage overhead rates, for example, 25% in controlling area 0001. You can also define quantity-based overhead rates ($100 per piece).

Percentage overhead rates are recommended if, for example, you want to calculate quantity-independent overhead on costs for particular cost elements in a cost center. Quantity-based overhead rates , on the other hand, are calculated for each unit of measure of a cost element.

You can combine the two by assigning a 10% overhead rate, for example, to a cost element and an additional rate pf $3 per hour.

Overhead rates are limited in duration and can be adapted to meet your requirements as part of current settings.

You must assign a Dependency to each overhead rate. The content of particular order fields for a cost center, a business process or an order can be moved back as dependencies. The system prescribes which fields you can use. For example: if you enter "plant" as a condition, a defined overhead rate is calculated for each plant.

Using this condition, the system can access the relevant condition fields in the appropriate Condition Tables. All the condition tables delivered in the standard contain the fields "Controlling area", "Overhead type" and at least one field from the cost center master data, business process master data or order master data (see below).

Plan, actual, and commitment overhead can be calculated. The overhead type distinguishes between the three. Business processes do not use commitments.

Standard Settings

The SAP standard system contains overhead rates with the following dependencies:

To define order-dependent overhead rates, you create an overhead key and enter this key in the order master data.

To define product-dependent overhead rates, create an overhead key and link this key to an overhead group. This group is then entered in the costing view of the material master record.

Activities

To define a percentage overhead rate, proceed as follows:

1. Choose "Create" to create a new overhead rate.
2. Enter a four-character identification code and a description for the new overhead rate and assign a condition to it.
3. Select the row and choose "Detail"
4. Specify the individual overhead rates.
Each record consists of a validity period, a percentage rate and several condition fields, which are taken from the the condition tables.
5. Save your overhead rate.