Basic Settings for Product Cost by Period (SAP Library

Basic Settings for Product Cost by Period

Here you make general system settings for the Product Cost by Period component. These include:

Define origin groups

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.

Define overhead groups

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.

Define overhead

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 surcharge, depending on these conditions

what object (cost center, order) is credited, and under what cost element, when actual costs are posted.

Define template

If you want to use template allocation in the Product Cost by Period component, create a template that can be applied in the planning and allocation of activity types and business processes.