Overhead cost

[Former Member]

Hi Gurus,

Pls let me know about the what is Overhead cost and why and how is used in PM order?How overhead cost value is determined in the order?

Regards,

Bkumar

[former_member1341210 · Accepted solution]

Hi,

This might help you.

Link: [Please Refer|;

Regards.

[Former Member · Accepted solution]

Hi Thanks most of the part is cleared like how overhead rate is coming/calculating in MO order cost.But still i am not aware that what is use of overhead rate and whay it is not appearing in Actual cost.it appears in plan cost only in the order.Pls let me know how it would appear in Actual cost in the order.

[Former Member · Accepted solution]

Hi Kumar,

When we reserve the material or create the service PR the cost will be appeared in Planned cost (as per the settings in SPRO for value categories),After that when you post the material reserved or create the SES for the services this Planned cost will be transferred to Actual cost.

I think this will be help full

Regards

Kumar

[Former Member · Accepted solution]

Hi Dear,That is fine when Planned cost and Actual cost appear But question is about overhead rate.when overhead rate is appeared and why?

[Former Member · Accepted solution]

Hi,

If overhead cost to be appeared in actual cost you need to run KGI2 then it will be included in actual cost.

Regards,

Sudhkar

Edited by: SUDHAKAR P V on Jan 24, 2012 10:27 AM

[Former Member · Accepted solution]

Hi this is the answer i was looking for..Thanks all for your supppeort.

[Former Member]

Hi

you need to define in order type- object class as overhead in OIOA transaction.

all costs related to order to goes to overhead

Regards

Seenu

[Former Member]

hi

overhead cost means

we might be using some utilties for the order. to caculate the values for the utilities we uses resources with activity type.

then we will maintain price for these in KP26 so that the price calcualtion happens

[Former Member]

Can you elaborate this?You mean only in the case of activity type we use overhead?