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Joint Venture Accounting Cost Calculations Step Rate Overhead Calucations

former_member275354
Discoverer
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962

I am trying to set up MCO step rate overhead calculations and I am trying to understand how this calculates the steps.

I have the following requirements,

  1. Frist $100,000 at 5%
  2. >100,000 at 3%
  3. > 1,000, 000 at2%

I am not understanding how SAP calculates the overhead. No matter how I try to configure it will not do what we want. Does anyone know how this works?

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Answers (2)

Answers (2)

former_member284044
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JVA General Overhead

In ECC we used to show the total billable and the total overhead amounts but in S4 it is no longer shown in the output because ultimately postings are done by WBS element only both in ECC as well as S4 and the total billable amounts and total overhead is shown in the screen output for ECC whereas in S4 it is not present.

In ECC this overhead is calculated at the WBS level, in S/4, this overhead is calculated at the WBS - Sub level to allow lower level customization of rate calculation.

Unfortunately this means that you can't just compare the WBS level and WBS sub level postings between ECC and S/4 and expect them to be the same.

When you roll it up, it should be the same overall values (minus some minor rounding differences due to the new calculation logic),.

------

Currently the output report may list several line items for the same WBS sub element level. The key is that similar WBS sub elements are aggregated, then calculated against the step rule logic, then pro rated back out to the line item.

Example:

WBS OH Base


WBS 100.A $100 Aggregation = Calculates against rule as WBS 100.A Base = $300


WBS 100.A $200

former_member601419
Active Contributor
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Hello Murphy,

In order to achieve this, you need to set up the following way

1- GJ74

No Amount %

1 blank 5

2 100,000 3

3 1,000,000 2


2- In GJ63- Create a cost object type and select the right JV OH type

3- In the wbs master, make sure you select this OH type in the JV tab

4- In FBKP- assign the G/L account where the OH will post to.

Post to this wbs and run GJ95. It should work.
Thanks,
Zaid

Former Member
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Hi,

What is the tcode to make changes in the wbs master so that I can select the appropriate OH type.