cancel
Showing results for 
Search instead for 
Did you mean: 

COST SHEET

Former Member
0 Kudos

What is "cost sheet"?

Accepted Solutions (0)

Answers (2)

Answers (2)

former_member188826
Active Contributor
0 Kudos

If you need to charge indirect costs incurred in a cost center, to an order, you can use costing sheet.

What the costing sheet does is, it transfers the cost from the cost center to the order, usually, based on a percentage. At period end usually we run the process of calculating the overhead. The costing sheet engine enable the order be debited with the cost and the same amount is credited to the sending cost center, through a secondary element.

Let's take an example. Material handling department wants to charge the orders an amount (calculated by applying a percentage on the value of raw materials consumed by the order) You can do it by a costing sheet. The base, overhead rate, Overhead key, credit are the major components of costing sheet. In our example, the Base contains the raw materials consumption cost element. The overhead rate contains the overhead keys (also given in the material master) that has the percentages to be applied for plan and actual separately. The credit tells what cost center to be credited and cost element to be used.

Though the above explains the for product costing environment, this logic can be extended to non product costing environment like internal orders, probably with minor variations. The base will have to contain the cost elements that are likely to be incurred in the order.

sridevi_p
Active Contributor
0 Kudos

Hi,

Cost sheet is more a general term used in Controlling - Esp in product costing

It contains details of all the primary and secondary cost incurred.

Regards,

Sridevi

<b>Award points, if useful</b>