Re: Indirect labor

Aryan

Part A

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FG

    RM1

    RM2

    Dir Lab

    Indirect Lab

    Overhead

Overhead Concern

Proposed solution: Create another activity OH Cost and OH cost center plan like other 2 activities and also define it in Routing

Only thing if you have separate CC for  Prod Mgmt , QC ,Admin & maintainece ..you plan cost in these CCtrs and allocate these cost to a Common CCtr OH through Distribution cycle so that original identity of CE maintained.

Part B

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In case of Overhead ,  Personally I like to go with  below option of Cost sheet but.

we  have one overhead group assigned in the material master then how can I bring or show below break up  when do a CK11N ..

FG

    RM1

    RM2

    Dir Lab

    Indirect Lab

    Production mgmt

    Maintainece

    Qc

    Admin

......Upto Indirect lab no issue because will come from BOM & ROUTING

  For Break up of OH in costing sheet

    1. Take Base Value with all CE (GROUP) belong to 4 category of expenses (Prod Mgmt,Maint,QC and Admn & if any oths)

    2. While creating cost sheet row for OH rate create 4 rows taking % so that it makes 100% for total 4 category with proper credit CE to identify separately

  3. In CCS define 4 line (attributes) for each OH cost

OR

  I need to plan in KP06 as mentioned by Kamal , if thats the case then how can the $ values mentoned in the table in my query above will flow

..... Here also you have to define an activity to flow your cost from OH cost centre if you want to show OH cost without break up. If you want to show breakup for each cat then 4 OH activity to be defined if don't want costing sheet.

Now I am giving a simple solution in one shot....

Create One activity Manufacturing Cost/Operation cost

a) Plan all CCtr except Production deptts(CCtr) in KP06 without any activity

b Plan for prod cctr (KP26 and KP06)

c) Now allocate cost of other than prod deptts cost to prod deptts through allocation (assessment/distribution)

Now all costs have flown to Prod deptts.

d) Do KSPI to get the price of Activity (Single activity)

Now to get the break up

in CCS create RM 1/ RM2 etc  will flow as per cons a/c/CE

    To break your dir..indirect lab also do CCS with relevant CE

    Create OH also similarly do break uo or only Overhead cost

Most simple method and there is little scope any un-absorbed cost in any cost center.

Kasmal