Project Cost Forecasting

[Former Member]

Hello PS experts,

I am trying to enable the Cost Forecasting functionality using the CJ9L transaction which will update my dedicated cost forecasting CO version - 'CFV'. A pre-requisite to running Cost Forecast is to re-schedule the networks which I have, and the other is to calculate overhead on actual and commitment values, which I need some understanding.

An overhead from SAP's definition are additional costs that cannot be allocated to specific projects or other CO objects. With that in mind an overhead rate and costing sheets need to be configured based on costs or quantities that were posted to the project with reference to the relevant cost elements such as labor and materials.

How do you determine the percentage or quantities of the overhead rates for the plan, actual, and commitments?

To ensure our cost forecasting is calculated correctly, I need the total amount(100%) to be considered when calculating overhead. But I don't think that's rational from the examples I've seen.

Can you please clarify how the percentages set in the overhead rates effect the cost forecasting calculation?

Is cost forecasting using values from the overhead calculation?

In our test environment, I have a simple project with one network activity assigned that has been planned for 100 hrs, and 1 time confirmation of 10 hrs(Actual cost). If cost forecasting runs successfully I expect the CFV CO version to be updated with planning values into the future.

Please advise. Thank you.

[raghavendra_praveen]

Hi

If your query is regarding calculating overheads then I can give you small example:

You can run overheads as planned and actual on network/ WBS element through costing sheet assignment.

For this first you need to configure the overhead rate type (percentage or qty based) under PS-> Costs-> Automatic and Periodic Allocations-> Overhead-> Costing Sheets-> Define Percentage Overhead/ Define Quantity-Based Overhead Rate. You need to choose the appropriate dependency here for your overhead rate.

Once above task is completed then you can run this overhead rate on the base values under PS-> Costs-> Automatic and Periodic Allocations-> Overhead-> Costing Sheets-> define costing sheets. Here you need to mention the rate with steps/ counters.

Run the plan overhead on project planning then run project cost forecasting, actual overhead.

[Former Member]

Hi,

How do you determine the percentage or quantities of the overhead rates for the plan, actual, and commitments?

Can you please clarify how the percentages set in the overhead rates effect the cost forecasting calculation?

For the questions above, i think you should get in touch with your FICO guy to get a better understanding on how the Overhead functionality works.

As far as the basic Cost Forecasting functionality is concerned i would suggest you to search the forum.

Regards,

Gokul