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Hi All,
Thanks for your replies. This is not an academic, it is a genuine requirement and same material number is purchased and sold. The main purpose is to load inventory with overhead cost and standard costing is used for all materials whether purchased or sold. Sales order is not a cost object here. We are also thinking of a solution with a condition type in Purchase order which can post to an absorption account and reduce PPV. I just want to know if there is any other option or process available in SAP. Also, if we use costing sheet to calculate overhead automatically and the cost center defined in costing sheet does not get any credit, is there any problem in the system?
Regards,
Amy
---------------Original Message---------------
From: Amy
Sent: Friday, October 01, 2010 3:19 PM
Subject: Product costing: Overhead on material cost and credit for absorption of OH
> We have a requirement to calculate overhead on materials purchased from outside to load the internal overheads related to purchasing activity. The overhead needs to be certain % of material cost and is required to be included in standard cost estimate of the material. It is possible to calculate overhead cost with costing sheet and assigning overhead group in the material master. But as there is no production order involved in this scenario, the question is how to credit cost center for absorption of the overhead included in the standard cost of material. The scenario would be to purchase product with purchase order and sale it, Can absorption entry be done by debiting sales order and crediting cost center at the time of Post goods issue against sales order? Or is there any other process available in SAP for this? We run FICO reconciliation postings. Would FICO reconciliation posting program Tr code KALC take care of such posting?
>
> Thanks,
>
> Amy
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