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Allocation of Secondary Cost

Former Member
0 Kudos
72

Hi SAP Gurus

We have cost like rent, office maintenance, salaries/wages other general administration expenses which posted directly from Finance module to cost center.

This cost needs to be allocated to Production orders. Request your guidance in understanding how to handle this.

Thanks,

Srikanth

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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We are using sap standard process for this.

Former Member
0 Kudos

Hello,

You want to allocate the cost to production order from the cost center.

KSV1 Acctual disribuion cycle may help you.

Regards

Ravi

durgasankar_innamuri
Active Contributor
0 Kudos

Hello,

Secondary cost will be allocated based on so many factors like output(produciton quantity). While transfer cost from cost center to production order the total cost will be settle on the final product.

Check with other replies.

Regards,

Sankar

Former Member
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Hi Sankar,

Presuming that we have only one product and all the cost needs to be allocated to Production orders created during the month, can you please explain how and where can i see the total cost allocated?

Thanks,

Srikanth

Former Member
0 Kudos

Hi Srikant,

The cost allocation through production orders for a single or multiple products can be done

by including these cost as either Overheads or by creating as a Base in the Costing Sheet.

Further these cost elements has to be allocated through Cost Component Structure OKTZ.

You can view the costs captured Production Order wise for these cost elements.

Sadashivan