Overhead template is calculating overhead on quantities once again

[Former Member]

Effective Jan 1 2015, we can been using an overhead template which was created using CPT1 which allows you to charge overhead on a production order based on quantities delivered on the production order.

This is what has happened:

Jan 2015:

Quantity produced on the production order X was 1500 eaches

Overhead rate is $0.10 per each

Overhead charged using CPTD to production order X  = 0.10 * 1500 = $150

Transaction CPTD runs as a scheduled batch job every night.

Throughout January, the overhead was charged only on the additional quantity every day on the order.

Feb 2015

Since Feb 1 , no further quantity has been produced on the production order.

CPTD runs every night as usual

But in February, CPTD is again charging overhead to the production order based on the quantity delivered on the order  which is 1500 eaches.

But that production has already been taken into account in the overhead postings in January

Why is CPTD reading the same value again and charging overhead on it?

Any help on this will be highly appreciated since there are 1000s of production orders involved

[Former Member]

I'm adding an image of the actual overhead template I'm using

The algorithms highlighted in blue are the ones that are driving the posting.

[kamalkumar_biswas2]

Hi

I think as you have taken yield based algorithms system is not considering period...try by taking period based algorithms...

[Former Member]

Thanks.

I used yield based algorithms so that the overhead is calculated only on the 'good quantity' produced and not all quantity (good quantity + assembly scrap)

This is the business requirement.

Can you please point me to the algorithm which considers yield based on period?

[kamalkumar_biswas2]

Hi

  I have tested that 2 years back..probably "Period based confirmation by order"

  Pl test from your end

[Former Member]

Hi ,

Template allocation only considers the status of an order but not the dates..
This applies to overhead calculation and activity allocation, and it is also the same not only for process orders but also for production orders.
For example if you run transaction CPTD for periods 1 to 12 you will get the allocations twelve times. The periods just are NOT considered for the selection of the orders. This is not just valid for template
allocation but also for other applications. For example you can use transaction KB11N (enter manual repostings of primary costs) to test this.

Actually, if you want to allocate process costs only once to an order you have to make the appropriate customizing settings.

Let's consider the case that you would like process costs allocated only at the end of the period in which the order was released. This can be set up using the following customizing path in the SAP Maintain Templates (CPT1)

If you scroll to the right you will find that there is a column with title 'Actual Allocationt'. Double click on the corresponding field for a given line will show you a list of the available functions. There you
would have to chose one of the following functions:

3 options are already available :
OrderStart (K_ABC_VALUATION_ORDER_START): allocation takes place during
the period when order was created (status I0001: CRTD)
OrderEnd (K_ABC_VALUATION_ORDER_END) : allocation takes place during
the period when order was confirmed (status I0009: CNF)
OrderShipment (K_ABC_VALUATION_ORDER_DELIVERY): allocation takes place
during the period when order was shipped (status I0012: DLV)

Please check whether you can change your template(s) using one of the functions OrderStart, OrderShipment or OrderEnd in column event. Presently the same in blank for you..

This should solve your issue..

Regards

Sarada

[Former Member]

Thanks Sarada.

I have used quantity based overheads (CO43)  in the most recent past which was based on hours confirmed on the production order. This used to calculate overheads only on the delta hours on the order even across periods. It never calculated overheads on 'all hours' confirmed on the order when we moved to the next period.