Wrong Calculation of Sales & Administration Cost and COGS

[Former Member]

Dear Sir,

We have a scenario where we charge Over-Head on the Labour . Accordingly we have made necessary setting in the configuration . But in the Cost Run , we find that COGS / Sales & Administration Cost is getting calculated wrongly .

To explain it further , say Material Cost is 100 and Labour Cost is 40 . Over-Head defined on Labour is say 50% .

In the Ck11n , we are getting following values :

COGM ---> 140

Sales & Administration Cost -

---

> 60

COGS -

---

> 200

So the mistake is , that in "Sales & Administration Cost " it is clubbing both Labour and OH . So instead of 60 the value must have been 20 .

Same is true for COGS , here instead of 200 , correct value must have been 160 .

Kindly guide me , how to resolve this error .

Regards

Sonia

[Former Member]

Hi

Please ceck your costing sheet.There should be two base one for Material and another for Labour.

In the Overhead rate you have to mention the labour Row correctly.

Also check the costing variant whether correct costing sheet has been assigned or not

Thanks

Ansuman