Systemically calculating Overhead Rates in SAP.

[Former Member]

Hi All,

My company currently calculates labor and overhead rates used for production outside SAP. These rates are loaded back into SAP before completing the CK40N.

Is there a way to configure SAP to systemically calculate the labor and Overhead rates? I am trying to get rid of the manual effort involved downloading SAP data into an excel spreadsheet to then calculate rates offline.

Thanks,

Moroni

[iraladamodara_reddy · Accepted solution]

Hi Moroni

You can setup in SAP system two ways:

1. KP26-Activity Type/Prices Plan Rates can be maintain for Labor/Overhead based on Hours X Rate/hour for each activity type/cost center combination for all periods 1 to 12 in  a fiscal year.

2.Through- SPRO-Overhead Cost Sheet structure to charge to product based on percentage rate or quantity based rates under Product cost Planning.

This can be free plan rates which can be charged to product without any manual entry/upload by excel.

Hope this can meet your requirements.

idreddy

[Former Member · Accepted solution]

Thanks Irala.

Can this step be performed with Budgeted Costs as opposed to actual costs hitting the cost center? Do I need any specific modules turned on within SAP to allow for the systemic calculation of Overhead rates?

[iraladamodara_reddy · Accepted solution]

Hi Moroni

First of all check what is the business requirement,  process flow, feasibility and then decide based on the suitability to your company/ client, how for correct Master data can provide by the team,as a consultant you need to check all the pros/cons and then decide which method to adopt i.e cost sheet/ activity rates..

Hope you understand the process,then  need to follow as per requirement of company.