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Overhead costing sheet and activity types

Former Member
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Hi CO Experts,

I have a confusion regarding the Overhead costing sheet and the activity types.

First of all my understanding of Overhead Costing sheet is that it is used for allocating overheads to the process order or production order.

The confusion is that the same can be done through the activity type by using the cost element group containing all the overheads.

Please help me out with the difference between the two methods if my understanding is correct.

Thanks in advance

Edited by: yusha abidi on Nov 26, 2011 1:26 PM

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Answers (2)

Answers (2)

Former Member
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Overheads are used when the customer is not very concerned about the level of detail of costs, so they distribute by a standard percentage,

Activity types are used when the allocation needs to be very accurate,

More effort is needed from the users side if you select the activity type route, but the cost detail will be more, where as it will be easy for the user to go for the overhead percentages route, but the cost detail will not be great.

Its up to the user which method he wants to opt for.

Thanks

Naveen

Former Member
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Hi,

overhead calculation uses a costing sheet with percentage or quantity overheads based on a base value and can be excuted for a bunch of orders at once.

Whenever you use activity types you have to make a time confirmation or use KB21N to post from the sender object (cost center) to the production/process order.

BR Christian