Overhead Calculation: Splitting Fixed and Variable Portions
Description
Prior to Release 3.0, overhead surcharges were split into fixed and variable costs in the same proportion as the base costs of the object to be debited (order, unit costing and so on). The overhead percentage rate was applied equally to both cost portions.
From Release 3.0, you can
- apply different percentage surcharges to overall, fixed, and variable cost portions of the same base cost element.
- specify the proportion of fixed and variable costs credited to the credit object.
Calculation base
In the calculation base, you can now specify to which portion of the base cost elements the overhead surcharge is to be applied:
- total costs
- only the variable costs
- only the fixed costs
This allows the system to determine the costs to which the surcharges are to be applied. If for example, you want to apply different overhead surcharges to for the variable and fixed cost portions of the same reference cost element, you have to create two calculation bases containing this cost element:
- in the first, you activate the indicator 'Fixed'
- in the second, you activate the indicator 'Variable'
You then define different percentage overhead rates and enter these for the appropriate calculation bases in your costing sheet.
Credit
In the credit, you can now enter a percentage rate specifying the proportion of the overhead costs to be credited to the relevant object as fixed costs:
- 100 % = all fixed
- 0 % = all variable
If you want to continue to split your overhead in the same proportions as for the base cost elements, enter '*' in this field.
Change system parameters in customizing
If you want to use the new functions, you may have to adapt your costing sheets, calculation bases, surcharges and credits to meet your requirements.
Define calculation base