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Thursday, September 13, 2012

Costing sheet

Use of costing sheet:

In the costing sheet, you determine the following:
  • The direct costs to which overhead is applied (calculation base)
  • The conditions under which overhead is applied (dependency)
  • Whether overhead is calculated on a percentage basis or on a quantity basis
  • The amount of the overhead percentage, or the amount of overhead for each unit of measure
  • The validity period for the overhead
  • Which object (cost center or order) is credited, and under which cost element for actual postings (credit key)
Overhead cost elements: 
IMG à Controlling à Product Cost Controlling à Product Cost Planning  à Basic Settings for Material Costing à Overhead à Maintain Overhead Cost Elements

 Overhead cost elements used to define overhead to products.

Calculation Base: 
IMG à Controlling à Product Cost Controlling à Product Cost Planning  à Basic Settings for Material Costing à Overhead à Costing Sheet: Components à Define Calculation Bases

The calculation base determines to which cost elements overhead is applied together.
We will define 2 bases on which overheads will be calculated:-
1)  Materials
2)  Wages


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