Selling & Distribution Overheads Allocation on basis of Qty sold

Question

Dear Experts,
Client wants to allocate selling and distribution overheads based on the quantity of the goods sold.
Which is best way to absorb these costs
Eg - Company Code A -
Cost Center MktA incurred $1000, this cost center deals in FG Product A Sales
Cost Center MktB incurred $1200, this cost center deals in FG Product B Sales
Cost Center Mktc  incurred $1500, this cost center deals in FG Product C &D ales
Product A sold 1000 kgs, Product B sold 1200 kgs, Product C sold 500 kgs, Product D sold 1000 kgs
For arriving Cost of Sales - we need to allocate Marketing and sales ovehreads on the basis of volume of goods sold.
Regards,
Sanjai

Answer 1

Hi Sanjay
As Ajay said maybe KEU5 could be enough to distribute the expense from cost center to the products.
But usually you distribute the expenses for product+customer key. In this case KE28 could help.
In KE28 you distribute the values from Actual Data, in your case the Record Type will be = D (Overhead costs, assessment).
The reference data would be F (Billing doc) , the reference base will the key factor you want to distribute.
Then you go to Processing Instruction and set Customer+Product in DLvL column.
In Selection Criteria you fill company code, plants and any other fields to restrict the processing data.
In Value Fields you flag the value fields that will receive the distribution.
Well I hope I have helped. I had some problems to run KE28 but now is fine.
You can reverse in KE29N.
Regards.