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Query on costing in projects

Former Member
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Hi,

The concept of costing in projcet system which i understood is as follow

1.We create project profile in OPSA and under organisation tab page we assign the plant to the profile, which means we can use this profile for the specified plant.

2. We have costing variants defined - PS02 plan and PS03 actual. This variants are maintained for the plants, which is defined in the above project profile. This costing variants consists of the costing type and valuation variant. The valuation variant further consist of the priorities for the prices of material and activity and the costing sheet. Now costing sheet contains the base rate and the overhed rates for the various cost like production and material.

Now when we create the project using the above project profile and with the standard project structure, we can add the activity to it. Now consider that the activity is internal activity and the work centre responsible for that activity is defined inside it. So whenever the project is saved then the cost is calculated on the time defined for the activity and the rate for that activity type in KP26 (Combination for the cost centre and the activity type). Now if i add the material to this activity the rates for the material are taken as per the criteria from the valuation variant and overhead charges from the costing sheet.

My question is

1. What is then logic of defining the base rate for production and other things in costing sheet.

2. If i want to add the overhead cost for the internal activity. How to add that?

Hope somebody will reply ASAP.

Thanks

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi Raghunandan.....

Bisically Costing Sheet is used in Overhead Calculation --

Now see the structure of Costing sheet---

1.Base Row- Have cost element from --to or Cost element Group ...in which Cost (that is collected from material or from other activites..like Freight ..and etc) will be collected on which overhead will be calculate.

2.Define Overhead Rate l

3.Cost Element in which overhead amount will be credit.

Rewards points..

Thanks & Regards

SMITH