2 Replies Latest reply: Jun 19, 2011 6:34 PM by R K RSS

Overhead Cost in Process Order

R K
Currently Being Moderated

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

  • Re: Overhead Cost in Process Order
    srihari monavarthi
    Currently Being Moderated

    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

    • Re: Overhead Cost in Process Order
      R K
      Currently Being Moderated

      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

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