Planned & Actual Overhead Rates
Hello friends..
In the costing sheet, under the percentage overhead rates..
Can someone please tell me what is the basic difference between the Planned Overhead rate (Overhead type 2) and actual overhead rate (overhead type 1)?
Please explain..
Regards
Shiv
Well, usually we maintain the same percentage for both plan and actual. Just for appreciating the difference, I indicated to try with a different %. This could be having an use too, where the planning is done at beginning of the year and later in the year, you land up in under absorption, you may want to absorb more on production order, you could resort to.
In cases of activity pricing, you can run an actual activity pricing, that can re-calculate the activities. But for indirect overheads, where costing sheets are used you can only change the actual (type 1) percentages.
Well the purpose of standard costing is to set a standard and monitor the variances as we produce. Whatever changes to actuals are made, anyway will be disclosed during the variance calculation.
Similar Messages
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Actual Overhead rates on Production Orders
There is a function that let you recalculate overhead rate for actual?
I mean for example, when you use activity types in production orders, during confirmations planned price is posted to orders, then at the period end closing you can calulate actual price (KSII) and then revaluate production orders with this new price (CON2)
Is there something like this for overhead rates? p.j. if your actual rate is $3.00 by produced unit. Then at the end of the month is there any transaction that compare actual expenses and actual production and determine new rate? example $3.5. In order to revaluate production orders?
ThanksHi Espinosa
Welcome to SDN!
I guess your question is to check if there is a mechanism to auto calculate the overhead rate in the system....
Sorry, there is no such mechanism.. You need to manually calculate and maintain it in KZM2 or KZZ2... Then revaluate the prod orders with new rate using CO43....
However, I find it painful and boring.. Hence, I have developed a workaround which I prefer to use always...
You need to decide on what basis you would like to absorb your overhead... Say, Machine hrs, lab Hrs or Output.... Lets assume you choose Output (KG) to absorb the overhead
1. You need to create an Activity Type called PRDOVH and assign it in the PP Work center... Assign the cost element of this act type to a separate cost component in OKTZ
2. While creating the Routing, the Activity Qty = Operation Qty for this Act Type... i.e. If you are creating routing for 100 Units, specify the Act Qty for PRDOVH as 100...
3. The Formula in the work center will be fully variable for this Act Type.. i.e. the Act Qty should change in proportion to the Qty Confirmed....
4. The PP Guys will confirm the operation in PP... This Act Type will also get confirmed along with it
5. Now calculate Act Price KSII as usual and run revaluation... From this point onwards, follow the normla procedure which you follow in month end
br, Ajay M -
Overhead Rates Maintenance in DEV,QAS & PRD Systems
Hello All,
I need your expert advice on this topic. "What is the best practice to maintain OH rates in SAP Systems across the landscape". Any link to document, whitepaper or knowledge link is very welcome.
I am aware that it can be maintained after making the system modifiable. But being a basis guy, i am against this method and am on the look out for the best process to do it.
Points will be awarded for sure for worthy answers.
Best Regards,
SriHi,
To define the overhead method, choose:
Period-end closing->Single functions->Accrual calculation->Extras ® Settings->Percentage method, or
Planning->Planning aids->Accrual calculation->Extras->Settings->Percentage method
Using the overhead structure display for the given controlling area, you can maintain, create, or call up information on accrual calculations for selected objects.
To do so, choose one of the following objects either by double-clicking on it or by choosing Goto from the menu:
Base (basis for calculation): You specify the base cost elements that are to be assigned overhead per controlling area. Choose Where-used list->Overhead structure or Controlling area to display whether and where the base cost element assignments exist.
O/H rate (overhead rates): Determines plan and actual overhead rate percentages for each controlling area applying to a particular validity period. On the overhead list screen, the Assignments indicator shows whether individual overhead rates exist.
To check the assignment of the current object (calculation base, overhead rate, or credit) and to display the assignments per controlling area, per overhead structure and the structures not used, when maintaining the above-mentioned accrual data, choose Where-used list-> Overhead structures or Controlling area (see: Where-Used List for Accrual Calculations).
Controlling->Cost Center Accounting-> Planning->Planning Aids->Accrual Calculation-> Percentage Method->Maintain Overhead Structure.
- Actual Postings->Period-End Closing->Accrual Calculation->Percentage Method-> Maintain Overhead Structure.
Save your entries.
Hope this helps you.
Rgds
Manish -
How to Close Planned Overhead Rates after production order/ CK40N
Hi,
While creating production order,it will pick planned overheads from Costing Sheet.After closing the production Oder,how will we close the planned overheads?
For example: We have maintained the planned overheads as 3% in the costing sheet.Over a period of time we have observed the actual overheads is only 2%.How to deal with this in the system.In this case how to close the planned overheads which we got from costing sheet?
Kindly advice me
thanks
SunithaHi,
If i understand you correctly,currently your planned overhead rate is 3% and you wants to change to 2%.
if this is the case goto your Overhead rate in configuration and copy overhead rate key which is with plan overhead type(2). and change 3% end as of today and copied one with new rate (e.g 2%) as of tomorrow and till end of life(12/31/9999)....
hope this helps you.
Thanks,
Rau -
How to Close Planned Overhead Rates(KP26) after CK40N -cost estimate
HI,
How to close the planned overhead rates which we have maintained in the KP26 transaction after excuting Material Cost estimate?
Kindly advice me regarding the same.
Thanks
SunithaHi,
Goto OKP1, enter your controlling area,version and fiscal year.then click on "PLAN"(F6) icon at your left side top.you will see transaction and period in new window.
here you can check the boxes under particular period.
Thanks,
Rau -
Cost center planning for overhead calculation
Gurus,
I have a doubt regarding the cost center planning for overhead calculation.
My scenario is:
There is a service cost center from which a certain percentage I want to allocate to the products as overhead. Now while doing so I have created a cost center and a cost element of type 43 (internal activity allocation). This cost element is the base for overhead calculation. Also I have created one cost element of type 41 (overhead rates). I have defined the credit (of cost sheet) with the cost element of type 41 and the cost center as mentioned.
Now I am facing a problem while planning the cost center with cost element type 43 through KP06.The system is throwing the error message: 'Cost element xxxx can only be used for activity input'. My understanding is we must carry out the planning for the cost center to allocate a certain percentage to the product cost estimate. If I am not allowed to use the cost element of type 43 to plan, what should I use for the planning?
Request your suggestion.
Thanks in advance!
Snigdho.Hi
Since you mentioned catg 43 cost element, I thought you are using Activuty Type
To apply overhead on the product during CK11N, you need not plan any value on the cost center... The values planned in the cost center can not be used as a BASE in your costing sheet....
It goes like this
1. Your cost estimate has BOM + Routing
2. So, the cost elements that you would see during CK11N, can be broadly classified into 3 types
a. Primary cost ele - Material Consumption accounts for BOM components
b. Secondary cost ele (Catg 43) - If you use any actvity type in the routing
c. Secondary cost ele (Catg 41) - These cost elements are parasites... They need some basis to calculate the overhead value... That basis can be either the (a) or (b) above.....
I think, what you are planning to do is Plan Primary cost ele in a cost center and trying to use the same as the Basis.. That wont work!
What you need to do is
a. PLan the values in the cost center, say, 100,000 USD
b. Absorb it on the basis of 2.a or 2.b
If 2.b is not applicable in your case, since you are not using activity types, then 2.a is the Only option left for you
Hope it is clear....
Regards
Ajay M -
Actual Overhead Cost Splitting
Dear All,
We have 5 direct activity types and 3 overhead activity types in the system.
Plan Overhead cost splitted perfectly aginst the 5 direct activity types based on the activity quantity,
but when it comes to actual splitting:
1.the system splitting the cost eually in NEGATIVE among the 5 direct activity types instaed of splitting to 3 overhead activity types
2. system considering the all direct activity cost as part of one overhead activity types.
I am unable to understand how the system is behaving while splitting actual overhead costs to direct activity types
Can sombody throw any light on this issue.
Regards
SUDear Mr Ajay,
Can you please help me on this issue.
Regards
Su -
Actual overhead cost variance adjustment.
Hi,
I have created an process order with different activity types.
Say i have created an order for 500ton whre my system has generated an planned cost for overhead rs 550 for salary.
now i go to KGI2 to calculate actual overhead cost.
In actual client has paid 600 rs in salary. So in KGI2 should enter rs 600.
I donot find any option to edit the cost to enter 600 rs.
please any of u let me know the solution.
Regards
PAVANDear,
Tcode KGI2 is correct but first check whether your cost sheet has done correctly or not.You have to give overhead percentage (Actual & plan) in Tcode KZS2.and assign proper cost element for credit
Check Costing sheet, % of OH and Transaction code KA06
Regards,
R.Brahmankar -
ACTUAL ACTIVITY RATE CALCULATION
Hi Gurus,
Is it possible to calaculate actual activity rate based on plan hours......
I know that we can splitt the actual cost based on plan hours by selecting splitting rule 22...
Now im doing actul activity rate calculation through ksii...
Then system considering actul hours confirmed in production for actual activity calculation.....
Pls suggest me.
RAMThank you for prompt reply.
Suppose this month we have produced only . 10 finished products.... But actual capacity is 20..... What ever cost moniterd by the production cost centers will be loaded on total 10 products only at the time of revaluation of production orders if we calaculate actul activity rate based on actual hours....... so the cost of the product is getting increased... so that he want to calculate actual rate aslo with planned hours..... Is there any other solution for this..
Pls suggest me ...... its very urgent.
Ram -
How to configure QTY per TON overhead rate for Output material
Hi,
Kindly advice me how to configure Per TON overhead rate on Output material?
Thanks
SupriyaHi Supriya,
Whethere the system is calculating Overhead on the basis of Input Raw Materials or on the basis of Output Materials, completely depends on the Cost Element what you assign in the "Base Row".
If it is to be on Qty Consumption of Raw Materials, then, you need to assign the RM Consumption GL Account in the Base Row. If it is to be on the Output Quantity produced, you need to assign the GL which you created for External Settlement (22 category).
*Note: SAP only accounts for input materials and activities with units of quantity for quantity-based overhead that are updated in CO. Assigning the Output Qty GL will help you only for Actual Overhead calculation.*
Pls revert back for further explanation...
Srikanth Munnaluri -
Difference between plan,actual and target in order
hi
plz tell me ans.
In the manufacturing order WHAT is the difference PLAN, ACTUAL and TARGET.
In the CK11N, we will estimate plan cost for one finished product but in order we are taking 2 costing variant that is PRODUCTION ORDER PLANDED (PPP1) and PRODUCTION ORDER ACTUAL(PPP2) . in the ORDER calculation which is taken as an account and tell me their functionality separately
thank u
sowmyaPlan Cost means this is the cost of Product or Material or Activity or any others statistical price which we estimate and Plan prices for organizations future activities.
Actual cost is the original/Actual cost we incurred for Product or Material or Activity or any other.
Target cost are the costs that are expected for a certain operating rate. It is the dynamic value which will be calculated on the basis Operating rate (Operating rate = (Actual activity / Plan activity) X 100), and It is a consistent basis useful for comparisons of the plan and actual costs of a period.
Ex:
we plan $110 per hour of Labor activity.
but we incurred $125 as actual cost.
for this Target cost is (125/110)*100=113
We use Costing variant for plan to calculate plan price of Order.
when order is created system posts planned costs to the order according to standard cost estimate of product, which uses the planned cost variant.
when the production is carried out Actual costs are posted to the order using Costing variant for actual. when order is completed system uses this two values to calculate the variance of production order. which can be settled to FI.
Hope U got... -
Costing Sheet Overhead Rate Change Mid Month
Does SAP Support a mid month overhead rate change in a costing sheet? I have an overhead rate change effective 5/12/2007, but my PM Order is not recognizing the change unless the Basic Start Date of the order is 6/1/2007.
hi
it will not support mid month overhead. it should be either period basis or yearly basis.
regards,
siva -
S_ALR_87013340-PRCtr Group:plan/Actual Caomparison Report performance issue
I'm trying to get the "actual line item" details from the S_ALR_87013340-PRCtr Group:plan/Actual Caomparison Report and I get a
ABAP run time error. I tried to running for just one month and on several accts. please help to me. how to get the report.
or how to improve the performance of this program.
Thanks in Advancehi,
first we need to know what part of the code is taking time. Do run time analysis using SE30 transaction to know what part of coding is taking more time. use can ST12 transaction to get more detailed analysis.
Since this is standard SAP report also check any OSS note exist for the performance problem. -
Plan/actual variance per month in a single report
Hi gurus,
MY client requirement is to get the plan/actuals/variance on monthly basis.
can we get that
i said S_ALR_870100185 actual costs montly
S_ALR_870100186 planned costs monthly
please dont say we can achieve it with a new development because i even have the same answer
they need a joint report of these two can we get that
its an urgent issue
thanks in advance
regards
hussainHi,
Check these URL's,
https://docs.google.com/leaf?id=0B5VK9X3nnz9rOTIyZGU5ODMtZGUxZC00OTJiLTg5OWMtNjBkOGVkNTRjZjIw&hl=en_US
https://docs.google.com/leaf?id=0B5VK9X3nnz9rNzAxMmNhZjEtMTA2Ni00OGE1LWE2ODctMDM2MTNkNTI4ODQw&hl=en_US
I have uploaded them in google docs.
Check if you can open them.
Regards,
Gokul -
Commitments at activity level in report S_ALR_87013533 - Plan/Actual/Commit
Hi All,
When i executed the report S_ALR_87013533 - Plan/Actual/Commitment/Rem.Plan/Assigned, the commitments are shown at WBS level but not at activity level. Is there any setting required to see the commitments at the activity level?
Where as the planned costs are shown against the activity in the same report.
Please suggest the required settings if any?
Regards,
Ramana.HI Rifaee/Martina,
In CJI5 the line items are shown under the WBS. But i would like to see the line items in the report.
Even after running the report cjen the database is not updated for line itemwise commitment in the report.
How to assign the PR/PO as account assignments to activity? Where do i need to do this setting? Please inform.
Regards,
Ramana
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