Use

Overhead costs are costs which can only indirectly be attributed to the product, such as electricity or general storage costs. Overhead is calculated using either the overhead rate or process costs.

You can calculate overhead for the costing items in the base object cost estimate that are assigned to a cost element.

You control how overhead is calculated by means of a costing sheet and, if desired, an overhead key which you enter in the master record of the base planning object. You also use a costing sheet to control the calculation of process costs. You enter the costing sheet in the master data of the base planning object.

Prerequisites

In order to calculate the applied overhead and process costs in the base object cost estimate, you must enter the key of the costing sheet in the master data of the base planning object.

To define your own overhead conditions for particular base planning objects, you must do the following:

To calculate process costs using the costing sheet, you must assign a template to the costing sheet.

Features

Applied Overhead

Overhead is calculated in base object costing when you do the following:

The system inserts a costing category of type G for overhead application. The overhead is updated under the cost elements that you specified in the costing sheet in Customizing for Product Cost Planning.

Overhead is only calculated for costing items that you have assigned to a cost element.

Process Costs

You can include process costs in Reference and Simulation Costing. You can do the following:

The system inserts costing categories of type X automatically.

See also:

Implementation Guide for Product Cost Planning

Activity-Based Costing