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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

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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


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:


  1. CB01 – Text Dependency

  2. D000 – Overhead Type

  3. D010 – Overhead Type/OH Key

  4. D020 – Overhead Type/Plant

  5. D030 – Overhead Type/Company Code

  6. D040 – Overhead Type/Business Area

  7. D050 – Overhead Type/Order Type

  8. D060 – Overhead Type/Order Catg.

  9. D070 – Overhead Type/Version

  10. D080 – Surch. type /Profit Center

  11. KF00 – Overhead Type

  12. KF10 – Overhead Type/OH Key

  13. KF20 – Overhead Type/Plant

  14. KF30 – Overhead Type/Company Code

  15. KF40 – Overhead Type/Business Area

  16. KF50 – Overhead Type/Order Type

  17. 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.


Image 1.02

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….

Controlling Area

Enter the Controlling here for which you are working.

Overhead Type

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.

Percentage

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.


Image 1.03

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

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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:


Image 1.04

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:


Image 1.05

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.

Costing Sheet Part III

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