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You use overhead costing to allocate overhead through percentage-based or quantity-based overhead rates. The basis for the allocation are the primary cost elements that you post as overhead costs. In the manufacturing industry, for example, these are usually the labor and material costs.


To make an overhead costing, you need to define control data in customizing for the corresponding application, and include this in a Costing sheet.


You can apply overhead to both plan and actual costs, or on the basis of commitment data.


Business processes do not use commitments.

If you debit a cost center with overhead rates, then they also apply to all the activity types in this cost center.

You can make an overhead costing:


You start Overhead Calculation using its own transaction. This means that you cannot carry out transaction-based overhead calculation.





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