RE:[sap-acct] Quantity-Based Overhead Rates not calculating
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 | Posted by User784376 (Partner ERP Solutions) on Jan 29 at 7:40 PM |  Mark as helpful |
this checklist helped me solve the problem 90%...Still I am trying to get the overheads credit to the cost element type 41 I created...
---------------Original Message---------------
From: User784376
Sent: Thursday, January 28, 2010 4:00 PM
Subject: Quantity-Based Overhead Rates not calculating
> Even I have the same problem like you. I used the following check list prepared by me from a Financials Experts article to review my configurations...however still no results! See if this check list helps you.<br/><br/>1. create secondary cost elements of type?41<br/>2. The cost element is also assigned to a cost component within the structure <br/>3. Checking the?Record qty?indicator in cost element master data is necessary for overhead application based on quantities consumed and is useful in reporting.<br/>4. The base cost element is one or a group of primary or secondary cost elements to which overhead should be applied<br/>5. , it is possible to distinguish between the fixed and variable overhead by selecting the appropriate button in the?Cost portion?of the base cost element definition<br/>6. Overhead is dependent upon conditions, which, if met, invoke the application of a rate. R/3 provides a number of these conditions as standard. The conditions are built using the concepts similar to SD pricing conditions. Standard conditions include controlling area, company code, plant, profit center, order type, and overhead key.<br/>7. If you want overhead to be material-dependent, create a freely definable overhead key, assign the key to an overhead group, and enter the overhead group in the?Costing 1?view of the material master record. <br/>8. The overhead type reflects whether overhead is to be applied to a production/process order in actual costs determination (Overhd type 1) or in standard cost estimate or production/ process order planned cost (Overhd type 2). <br/>9. Normally, planned and actual rates are the same.<br/>10. Since rates are subject to change, the option of entering rates is also available under the application menu?Accounting>Controlling>Product Cost Controlling>Cost Object Controlling>Period-End Closing> Current Settings>S_ALR_87008272 - Define Quantity-Based Overhead Rate.<br/>11. The question now is where and how the rates are calculated. R/3 does not independently calculate overhead rates (it does calculate activity rates). Therefore, this calculation has to be performed offline and the rates entered in the above IMG step.<br/>12. The basis is the identified cost center costs divided by the total units of the drivers. For instance, the cost of a technical services pooled cost center could be divided by the total production capacity or activity quantity to arrive at a rate. <br/>13. Care should be taken to ensure that the rate could be applied by the system using an input and not an output driver. Otherwise, it is not possible to apply overhead in planned or actual costs of the production or process order.<br/>14. Specify the cost originator that needs to be credited upon application of overhead to the cost object (production or process order). It is typically a cost center, though it could be an internal order or a business process. <br/>15. The percentage of cost recovery to be treated as fixed is to be entered under?Fxd %. The default entry is *, which means the credit is to be apportioned between fixed and variable in the same way as it is in the debit in the calculation base.<br/>16. The calculation base, overhead rates, and credits are assembled in a logical fashion in a costing sheet. Each overhead and credit has a dependency on the base. <br/>17. If the base cost element is not found in either the standard cost estimate or in the production/process order, overhead cannot be applied. If an activity is used to apply overhead, the activity to which the base cost element pertains must be on a routing or recipe.<br/>18. The costing sheet must be assigned to the appropriate valuation variants.<br/>19. SAP provides the ability to enter planned overhead credits for each cost center. This is done via transaction?KP06, which is also used for planning cost element debits. The credit is entered against the overhead cost element (type?41) created earlier. The amount of the credit is equal to the product of the specific overhead rate times the quantity of the overhead driver activity<br/>20. In order to be able to enter overhead credits via?KP06, a minor piece of configuration is necessary: business transaction?RKPZ?should be assigned a number range via transaction?KANK(number range maintenance for Controlling Area). The menu path is?Controlling> General Controlling>Organization> Maintain Number Ranges for Controlling Documents.
__.____._ ---------------Original Message---------------
From: User784376
Sent: Thursday, January 28, 2010 4:00 PM
Subject: Quantity-Based Overhead Rates not calculating
> Even I have the same problem like you. I used the following check list prepared by me from a Financials Experts article to review my configurations...however still no results! See if this check list helps you.<br/><br/>1. create secondary cost elements of type?41<br/>2. The cost element is also assigned to a cost component within the structure <br/>3. Checking the?Record qty?indicator in cost element master data is necessary for overhead application based on quantities consumed and is useful in reporting.<br/>4. The base cost element is one or a group of primary or secondary cost elements to which overhead should be applied<br/>5. , it is possible to distinguish between the fixed and variable overhead by selecting the appropriate button in the?Cost portion?of the base cost element definition<br/>6. Overhead is dependent upon conditions, which, if met, invoke the application of a rate. R/3 provides a number of these conditions as standard. The conditions are built using the concepts similar to SD pricing conditions. Standard conditions include controlling area, company code, plant, profit center, order type, and overhead key.<br/>7. If you want overhead to be material-dependent, create a freely definable overhead key, assign the key to an overhead group, and enter the overhead group in the?Costing 1?view of the material master record. <br/>8. The overhead type reflects whether overhead is to be applied to a production/process order in actual costs determination (Overhd type 1) or in standard cost estimate or production/ process order planned cost (Overhd type 2). <br/>9. Normally, planned and actual rates are the same.<br/>10. Since rates are subject to change, the option of entering rates is also available under the application menu?Accounting>Controlling>Product Cost Controlling>Cost Object Controlling>Period-End Closing> Current Settings>S_ALR_87008272 - Define Quantity-Based Overhead Rate.<br/>11. The question now is where and how the rates are calculated. R/3 does not independently calculate overhead rates (it does calculate activity rates). Therefore, this calculation has to be performed offline and the rates entered in the above IMG step.<br/>12. The basis is the identified cost center costs divided by the total units of the drivers. For instance, the cost of a technical services pooled cost center could be divided by the total production capacity or activity quantity to arrive at a rate. <br/>13. Care should be taken to ensure that the rate could be applied by the system using an input and not an output driver. Otherwise, it is not possible to apply overhead in planned or actual costs of the production or process order.<br/>14. Specify the cost originator that needs to be credited upon application of overhead to the cost object (production or process order). It is typically a cost center, though it could be an internal order or a business process. <br/>15. The percentage of cost recovery to be treated as fixed is to be entered under?Fxd %. The default entry is *, which means the credit is to be apportioned between fixed and variable in the same way as it is in the debit in the calculation base.<br/>16. The calculation base, overhead rates, and credits are assembled in a logical fashion in a costing sheet. Each overhead and credit has a dependency on the base. <br/>17. If the base cost element is not found in either the standard cost estimate or in the production/process order, overhead cannot be applied. If an activity is used to apply overhead, the activity to which the base cost element pertains must be on a routing or recipe.<br/>18. The costing sheet must be assigned to the appropriate valuation variants.<br/>19. SAP provides the ability to enter planned overhead credits for each cost center. This is done via transaction?KP06, which is also used for planning cost element debits. The credit is entered against the overhead cost element (type?41) created earlier. The amount of the credit is equal to the product of the specific overhead rate times the quantity of the overhead driver activity<br/>20. In order to be able to enter overhead credits via?KP06, a minor piece of configuration is necessary: business transaction?RKPZ?should be assigned a number range via transaction?KANK(number range maintenance for Controlling Area). The menu path is?Controlling> General Controlling>Organization> Maintain Number Ranges for Controlling Documents.
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