SAP Costing Sheet – Part II – Overhead Rates
Overhead Rates in Costing Sheet
Welcome to the next post in the series of Costing Sheet and it’s components.
This is the second part where we will be looking into the “Overhead Rates” component of Costing Sheet.
This component is used to define the rate at which the amount is calculated on the base amount (Calculation Base).
The overhead rates are divided into “Percentage Based” and “Quantity Based”, in this post we will see how both ot these are defined.
Percentage Overhead Rates
IMG Path: Controlling > Product Cost Controlling > Product Cost Planning > Basic Settings for Material Costing > Overhead > Costing Sheet: Components > Define Percentage Overhead Rates
This is one of the two options available for defining the rates to be used for calculation of costs on the values available under Calculation Base. Under this option we can specify the values as percentage of the Calculation Base.
System navigates us to the following screen as appearing in Image 1.01
In the above image 1.01 we can notice that SAP has provided many Percentage Overhead keys which can be used by us to define the percentages for calculation. But if we carefully look on the screen, we should try to take a moment to look into something called Dependency. A dependency is nothing else but a key which helps us maintain the rate for various combinations. So a dependency is the list of fields which are available while maintaining the percentage rate.
Given below is the list of all the standard Dependencies available for use:
CB01 – Text Dependency
D000 – Overhead Type
D010 – Overhead Type/OH Key
D020 – Overhead Type/Plant
D030 – Overhead Type/Company Code
D040 – Overhead Type/Business Area
D050 – Overhead Type/Order Type
D060 – Overhead Type/Order Catg.
D070 – Overhead Type/Version
D080 – Surch. type /Profit Center
KF00 – Overhead Type
KF10 – Overhead Type/OH Key
KF20 – Overhead Type/Plant
KF30 – Overhead Type/Company Code
KF40 – Overhead Type/Business Area
KF50 – Overhead Type/Order Type
KF60 – Overhead Type/Order Catg.
For e.g. if we use a Percentage Overhead with dependency “D010” then the system allows us to maintain percentage rate per Overhead Type and Overhead Key combination.
Now we will go ahead with the further part of Overhead maintenance. We for our understanding select Overhead Rate “C000” for maintenance and double click on Details tab on the left side of our screen (as appearing in the image 1.02) in order to understand how to maintain the percentage.
In the screen as appearing under Image 1.02 we have to enter the following information:
Valid from / Valid to
Enter the validity of the percentage relevant for this Overhead key. This facility allows us to maintain different rates for different periods. For e.g. 1% for year 2015-16 and 1.5% for year 2016-17 so on….
Enter the Controlling here for which you are working.
SAP has provided with two different overhead types to maintain percentage with. We can maintain the percentages for following types:
Type 1 – Actual : The percentage maintained against this are used to load overhead in actuals for e.g. Production Order.
Type 2 – Plan : The percentage maintained against this are used to load overhead in in standard cost estimate.
Enter the percentage to be calculated on the value of Calculation Base
We will also look at one more Overhead Rate which uses other Dependency so as to get more information.
As you can see on the screen under Image 1.03, we are using Overhead Rate “C020” which has dependency “D020” assigned to it. Now if we just see then we may realise that the dependency says Overhead Type/Plant, this allowed us to maintain percentage per Overhead Type and Plant combination.
Quantity Based Overhead Rates
IMG Path: Controlling > Product Cost Controlling > Product Cost Planning > Basic Settings for Material Costing > Overhead > Costing Sheet: Components > Define Quantity-Based Overhead Rates
Under this part, we can maintain the overhead rates using quantities unlike the percentages as seen above. The screen looks as shown in the image 1.04 below:
Here we can see similar screen as Percentage where we have to enter the Overhead Rate code and select dependency for the same. We will select the first key C100 provided by SAP and double click on details tab on the left side of the screen. This will take to the screen as appearing in the Image 1.05 below:
If we watch carefully we can notice that the screen differs here from percentage overhead rate maintenance. As we can see, in this case we have to enter valid from, valid to, controlling area and Overhead type which are same as percentage overhead but the difference start after this where we have to enter the following:
Amount: Enter the Amount to be used for calculation
Unit: Enter the currency Key here
Per: Enter the Quantity for which, the above amount will be applicable
Unit: Unit of measure for the quantity
After entering this information save the same and system will store the configuration of overhead rate key for us to be used for overhead calculation.
It is important to know that both these keys have their own way of working and suitability, please use your own reasoning to decide on what kind of overhead rate will be useful in your case.
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