Overhead calculation on Process order

[Former Member]

Hello Experts,

Has anyone experienced the below changes in the Overhead calculation behaviour on Process order , after New GL implementation - Before new GL , In overhead calculation , the base was only taking the Debit postings , but now i am experiencing , it is taking into account of the Goods reciept postings ( credit amount) . So in this , Overhead calculation is happening on the base of ( Total Debit - Total credit due to Goods reciept) net balance .. Which according to me is not correct ..

Could anyone please share any experience or solution how to solve this?

Thanks in advance

Regards

Ranjan

[ajaycwa1981]

Hi

Does your Credit GL account also reflects in the Debit postings? If yes, then the system behaviour is correct

OR ELSE, your BASE in the costing sheet might be too wide so that it is including the Credit GL Account also (COGM).. rectify your BASE

Regards

Ajay M

[Former Member]

No the GL account for the goods reciept posting is not appearing in any of the debit lines. Although in my costing sheet base , this GL account is there . But this costing shet we are using since 4-5 years. It never took the Goods reciept posting into account and overhead always got calculated on Debit postings . Which is correct. But all of sudden now its getting calculating on net base which is Total debit less the Goods reciept amount. which is strange to me ?

[ajaycwa1981]

HI Ranjan

I have started my career with ECC 5.0. So, I dont know about older versions...

I have always included only the required GL accounts in the BASE and it works... And my mind says, if you include the COGM GL in the BASE, the overhead will get calculated on it as well.. May be the older versions were different, which I am not aware of

Rectify your BASE and the issue would get solved

Regards

Ajay M

[Former Member]

hi,

you can use origin group in your base calculation. to exclude materials cost, you creat origin group and exclude it from overhead calculation. I think then material cost will not participate in overhead calculation.

pl see the others views also.

kkumar