10 Replies Latest reply: Dec 15, 2010 3:15 AM by Radha Krishna Myneni RSS

Incorrect Calculation of Actual Overhead

moeed baig
Currently Being Moderated

I want that overhead should be calculated on basis of the following formula


(Material Cost x Rate + Labor Activity x Rate) = Overhead


However in SAP the system is calculating overhead on the basis of the following formula


(Labor Activity x Rate) = Overhead


The system is calculating correct overhead amount in target cost as origin group and overhead group are maintained in material master record but when I go for actual overhead calculation the overhead is calculated on labor activity only which is not correct.


Can any one suggest an appropriate solution for correct calculation of actual overheads.