Overhead cost in costing run

hi,
costing run is to get the total estimation cost of a finish goods right? for example, in order to build finish goods A, need raw mats and overhead cost.
raw materials is according to BOM which is also defined in cost component structure.
1 may i know what about overhead cost? i can see overhead is defined in cost component structure but it is not defined in BOM. so how to include the overhead cost to the finish goods?
2 to calculate overhead cost, need to use what tcode?
thanks
rgds

Hi
If you want to add the overhead cost to your cost estimate, you need define the costing sheet and assign to valuation variant
In the costing sheet you have to give base for calculating the overhead cost and overhead rate and need to assing the secondary cost element and cost center in to credit key same cost element you need to assign cost component structure also
In the above manner the overheads to be calculated for Cost Estimate...
Regards
Srinu

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I have tried being as detailed as possible, and i hope it is coherent.
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Hi Althea,
Thank you for your response.
In the routing we have removed the MFG Overhead and now are using the Costing Sheet to calculate the Overhead. I think i have updated everything, eg costing sheet, costing sheet components, percentage overhead rates, costing variants. But now the requirement has changed again!!!! Just when you think you have crawled your way out of a ditch, someone pulls you back in.
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Now i had a cost element for Overhead, but in the cost element category was incorrectly selected as 43 (Internal activity allocation) instead of 41 (Overhead rates) now when i am trying to use select that Cost Element in the Costing Sheet under the credit area it will not allow me to save it. I have created a new cost element but i am not certain what the impact might be
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Hi Experts,
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Hello,
I have created a overhead costing sheet (having base as material cost elements where a %age is defined to be applied on the material cost) and attached it to the valuation variant of easy cost planning in PS module.
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Kindly suggest what is to be done.
Also pl. let me know whether I can see the cost component structure of easy cost planning.
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Hello,
Thanks for your reply.
But when I run CJ46 for a particular WBS element, it says "The object is not relevant for processing".
I have created the costingsheet as per the process mentioned below.
For overhead costing sheet, base is created with raw material cost elements range and origin group range.
Overhead rate is defined with dependency D020 - Overhead Type/Plant as 1.5% with proper validity period.
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The above costing sheet is attached to the valuation variant of easy cost planning in PS module.
There is a cost component structure 10 which is attached to costing variant PS06.
Still CJ46 gives message as "The object is not relevant for processing" when I run it for particular WBS element.
Kindly suggest whether I m missing any other step.
With Thanks and Regards.
Ratna

Dividing the overhead costs to production orders !

Hi all,
This is regarding the overhead costs split to different Production orders.
The scenario is for e.g There are 3 production orders
P-1
P-2
P-3
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absolutelly possible
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cheers
matej

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Hi,
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Thanks & regards.
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Hi Ajay,
Yeah I have maintained inventory valuation (Fixed and variable costs)
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Thanks & Regards.
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Edited by: vinutha1010 on Oct 25, 2010 7:37 PM

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hi,
the costing run is to get a standard cost for a finished goods item.
may i know if the costing run besides calculate the cost incurred from raw material consumption, material overhead, manufacturing overhead, will costing run also cover sales overhead or distribution overhead cost?
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rgds

Hi,
It always depends on the settings made in costing sheet and cost component structure. If you have maintained for admin and sales overhead in costing sheet and cost component structure then it will pick in costing run.
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Dear CO Experts,
I Have Semi Finished Goods (SFG) and Finished Goods (FG)
At the time of Costing Run I don't want to add Admin& Selling Distribution Expenses for SFG.
For FG, I want to add Admin& Selling Distribution Expenses. So I created 2 Cost sheets and Assigned to 2 Costing Variants through 2 Valuation variants.
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SFG Cost Sheet1
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SFG                            110
Internal Activity                5
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(125*20/100)             -
FG Cost                       150 (By using 2nd Cost Variant).
How to run Mark and Release in Same Perid two costing variants. Please give you valuable inputs.
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Hi!
To determine an overhead percentage rate using the overhead key, you
need to
1. assign a costing sheet to your order or valuation variant for
     costing.
2. enter in the assigned costing sheet, overheads that use the overhead
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3. assign the overhead key to an overhead group.
4   enter the overhead group in the material master record for the
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regs
ramesh b

Regarding Overhead Cost Calculations

Hi,
Please explain me the caluculations for Overhead costs (per unit) in CK13N and the activities values (like Set up, Cycle & labour hours) from where it is captured?

Activity:
- every work center (CR02) has a standard value key with up to 6 parameters (setup, labour, ...)
- in every operation of the routing (CA02), standard values are entered for every parameter (hours of setup, hours of labour, etc.)
- every work center has a Tab Costing with reference to a cost center and activity type for every parameter. In the cost center, activity prices are entered thru KP26
- When running the costs estimate, hours of each standard value times actiivity price gives the total costs of each activity.
Overhead
- the material master of the product (MM02) has an overhead group in the costing Tab
- the overhead is related in the CO Customizing to some prices charged to every production order (or cost estimate) based on some criteria (such as material costs, machine or labour hours, etc.)
Regards

SKF as a Tracing Factor for an Overhead Cost Assessment to PA

Hi,
I am trying to use a Statistical Key Figure as a user defined tracing factor for a periodic settlement (KEU5) of overhead costs into PA.
However I am running into difficulties trying to configure this.
Has anyone out there know how to do this and give me some pointers
I am getting an error message GA733. Incidentally I get the same error message when trying to perform a similar settlement in CCA using KSU5.
Im using ECC6.0
Many thanks.

Hi Dawn
Not clear about your requirement... You have captured expenses in IOs? or In Cost Center?
Your question is bit confusing as you want to capture SKF against IO, but you said you want to allocate cost centers.. So, I am confused
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Regards
Ajay M

Overhead cost template allocation

Hi All,
Can anyone please provide overhead cost template allocation configuration steps with print screens.
Regards,
Vijay

Hi Vijay,
Templates are nothing but a tool for complex calculation of formulas .
Templates can be used for formula planning , activity allocation or overhead cost allocation . Enviornment of template tells you what you want to do with a template .
If you want OH Calculation to product instead of a Costing Sheet .. use enviornment "1" for Plan and "9" for actual.
You have lot of pre-defined SAP complex formulas available in the templates which you can use..
Template Creation
Enviornment varies with requirement and config will also varry , considering you are using templtes with enviornment 1 and 9 ( for Cost Allocation to Product )
Transaction CPT1 :-
1. Enter the name of the template and environment 001 2. Inside the template Type = Cost Center / Activity Type
3. Description = as you please
4. Object = Use the sender object .. either cost enter or combination of CC and AA whatever you need :
SenderCostCenter = 'XXXXXX' AND
SenderActivityType = 'AAAA'
or you can use the screen in bottom right to input the formula
5. Plan Quantity = Use the screen bottom for formula or use your own one ..
BomItemAlternativeQuantity( AlternativeQuantityUnit =
MaterialBaseQuantityUnit, ConditionField = BomItemComponents,
ComparisonValue = 'XXXXXX' )
6. Plan Activation = ACTIVE
7. Actual Quantity = Use your own formula using predefined SAP formulas
OrderMaterialQuantityConf( Material = 'XXXXX' )
6. Actual Activation = ACTIVE
Assignment of the Template
1. Create a OH Key using SPRO > Controlling > Prod Cost Controlling > Product Cost Planing > Basic Settings for Material Costing > Overhead > Define OH Keys
2. In Transaction OKZ2 Create OH group and assign that to the OH Key created in 1
3. Create Cost Sheet (only code and name) in SPRO > Controlling > Prod Cost Controlling > Product Cost Planing > Basic Settings for Material Costing > Overhead > Define Costing Sheets
4. In Transaction KTPF assign Controlling Area : Costing Sheet : OH Key : Template Environment : Template
5. In material master costing 1 view assign the OH group to the material (standard cost estimate reads this)
6. In the master data of the order assign the costing sheets and OH key etc so that the actual template allocation can happen.
Execution
Plan template is not required to be executed. At the time when you run CK11N or CK40N it is taken care of.
Actual Template allocation can be done with transaction CPTA - Individual Processing and CPTD - Collective Processing
I hope you would find this useful and you can further explore templates for the various formulae that you can define using th bottom right hand side in the screen of CPT1 to create magic in allocation. What I told here is very basic.
Thanks
Rafi

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Hi Experts,
I am getting the difference in Costing Run as explained below,
1, Costing Run of year 2009 is not picking the two overheads as against 2008.
What may be the couse, all overhead keys are extended to year 2009.
Waiting for your reply.
Sham

Hi,
Please check the validity of those 2 overhead rates. Probably the validity is till 12/31/2008, that's why it is not picking. In that case you can create another row with validity dates from 01/01/2009 to 12/31/2009 or 12/31/9999 as the case may be.
The path for the same is mentioned below:
IMG>Controlling>Product Cost Controlling>Product Cost Planning>Basic Settings for Material Costing>Overhead>Costing Sheet:Components>Define Percentage Overhead.
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Hi Vimal,
Your proposal does not resolve the issue. I found OSS Note 375901, which addresses this issue - see below
:In Customizing for the costing variant (Transaction OKKN) in the tab "Misc.", you chose "Messages online" for the Error Management option.
Solution
Change the error management for the costing variant to
"Log and Save Messages..."
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Venkat

Overhead cost in costing run

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