Overhead Cost on Material

Hello Gurus.
We have Manufactuire one Product which has Value around 10,00000 Inr in stock.
Price contain only Material Consumption Value , BUT Not any type of Overhead like salary
wages, , labour, elctricity, site exp, security,insurance, testing,executive salary Overhead.
Now I want to add  These Overhead  on that Material, How i do it.
I am waiting your reply.
Regards,
riten Patel

Hi, You can add the Overheads on Material through costing sheet. The only thing you need to do is, you have to add one additional row for your overhead in costing sheet ()KZS2 transaction) If you are using.
1). You have to define Overhead key in product costing customization
2). You have to assign that overhead key to overhead group in the same customization
3). Then you have to define Overhead rates either quantity bases or Percentage based
4). You have to define Credit for Assigning Overhead row in the costing sheet (KZS2)
5). The above over head group should be assigned in the Material master (MM02), Costing 1 view
6).  In Costing Sheet (KZS2) - You have to add Overhead Row to the costing sheet
7). For each Overhead Row - you should assign one Credit where you will asign Cost center & Cost element
After that if you execute standard cost estimate, you will get the break up for Overheads which  you have added in the costing sheet.
You can also add overheads through KP26 transaction, you can add Overheads for each activity. So this will be added in workcenter formula. After that when you execute standrd cost estimate, you will get the Overhead based on activity. But this will be calculated at overall level and not at single material level.
If you want to add Overheads material wise, you better proceed with Cost sheet or else you can also go with activity planning through KP26...
Thanks
Fit 4 Nothing

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