Overhead Cost in Process Order

[Former Member]

Hi All

I need your expert inputs / suggestions to apply the correct method of calculating overheads in process order.

Requirement:

To calculate

a. Labor cost

b. Overhead Cost

c. Depreciation Cost of Machine

in a process order. Also .b. and .c. are dependent on labor time entered (a.)

What I have done:

I am new to PP and CO, so with my limited understanding I have done the following:

1. Created activities for labor, overhead cost and depreciation.

2. Created secondary cost elements

3. Created Standard Value Key

4. Added all the parameters (Labor, OVH, DEP)

5. Created a formula for these parameters

6. And used them in Resource and KP26

Problem:

With the above setup I get three values (Labor, OVH, Dep) to enter in the process order confirmation. However I need just one field : Labor time, for all the values to be calculated.

As OVH and Dep should use the same time as for Labor parameter but with different rate (as mentioned in KP26) is there a way out where I can just show Labor variable to be entered to the user and other two use that time also!

Or if you feel there can be different approach for the overheads and depreciation to be calculated kindly write back

Thanks in advance

-Rahul

[Former Member]

Hi rahul

I understand you want to use same formula for cossting for the

a. Labor cost

b. Overhead Cost

c. Depreciation Cost of Machine

Then in work center-> costing tab you can mention same formula for the overhad and Depreciation which was using for labour cost.

Please check and come back.

Regards,

srihari.M

[Former Member]

Thanks for your reply Srihari

Yes you are right I want touse the same formula for all the three activities, however I dont want OVH and Dep to be shown up during confirmation in COR6 or PI Sheet.

I have used the same formula all the three!

Hope I made the requirement clear this time. Please revert if there is a way out for this!

Thanks in advance

-Rahul