Define Quantity-Based Overhead Rates
An overhead rate determines the conditions under which overhead is applied to an object, and the level of overhead to be applied (depending on these conditions).
In this IMG activity you define quantity-based overhead rates. You can also define percentage-based overhead rates, for example, 25% in controlling area 0001, in addition to the quantity-based overhead rates, for example, $100 per piece).
Percentage based overhead rates are recommended if you want to calculate an overhead rate, not based on quantity, for costs of particular cost elements, for a cost center. A quantity-based overhead rates is calculated by unit of measure of a cost element. You can also combine percentage and quantity based overhead rates. For example, you can do this to calculate for a cost center a 10% overhead rate on a cost element, and an extra rate of $300 per 100 hours.
Overhead rates have a time-based validity. You can adapt them to your requirements using the current settings.
You need to assign a Dependency to each overhead rate. You can use the contents of particular fields of an order, a cost center or a business process as dependencies. The system defines the fields you can use. For example, if you have a plant dependency, you can specify that a defined overhead rate be calculated by plant.
The fields you chose to define your dependency are saved in a so-called Price Table in the system. All price tables in the system contain "controlling area" and "overhead type" fields. There may be another field (see below) for the order master, the cost center master or the business process master.
You can determine overhead rates in the plan, actual and commitments. The overhead type differentiates accordingly between plan, actual and commitment overhead. Business processes do not use commitments.
Standard Settings
The standard SAP System contains overhead rates with the following dependencies:
- Controlling area
- Company code
- Business area
- Plant
- Order type
- Order category
- Plan version
- Profit center
- Responsible cost center
- Overhead type
- Overhead key
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 quantity-based overhead rate, proceed as follows:
Additional information
To calculate quantity-dependent overhead rates , the units of measure must be updated in CO.
You have two options:
- Set the "mangage quantity" indicator in the cost element master data.
- If you wish to post different materials with different units of measure to an object (order, cost center, business process, WBS element...) under the same cost element, you must set the Material origin indicator in the costing view for the material master record. Materials with various units of measure must also differ in the "origin group" field entry.
The system only accounts for input materials and activities with units of quantity for quantity-based overhead that are updated in CO. These are the base units of measure for materials.
Conversions between units of measure are
carried out according to the rules stored in the global settings in
customizing ( 
"Check Units of Measure" step). Quantity conversions are
disregarded (such as those that you maintain in the material master).
The system takes a $/KG overhead for input materials into account, but not for
materials with "work area" units.