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Hi there, I have some query regarding the costing done for the order. As per my understanding for the costing Process/Production order includes the material cost, Mfg execution cost the overhead cost. Now the material cost gets updated thru the product costing with / without qty structure. The overhead cost is calulated thru the activites maintained in the workcenter/ resources. These acitivties are assigned to the cost center. From where the Mfg execution cost will get updated in the system.

Please enlighten me.at the same time if I am wrong in understanding the above mentioned two part of costing viz. Material cost the overhead cost. Please correct me.. Thanks regards Kaushik Choudhury. BOverhead/b bdoubt in the overhead cost.. Can you please elucidate me/b Overhead could be viewed as costs incurred in some ancillary departments. The services of that department is necessary but cannot be attributed directly as you do in the production department (like number of hours in routing).

Let's take ban example/b. 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 through 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. ) 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 (used only in CO).

B Second thing is that the Work center is assigned to the cost center. So the cost will get credited against the cost center I suppose. Aptana Debugger Extension Install Firefox Failed To Connect. Then how will we get it apportionment against the order./b Let us take an example: There is one production cost center which incurrs $ 100,000 in a month. The total job it does in that month, is to attend on 10 production orders. At the end of the month, All the costs of the cost center should be passed on to the ten production orders. That is why we add (charge or debit) the production order and reduce (credit) the cost from the production cost center. The Liver And Gallbladder Miracle Cleanse Ebook Store. Sdfblskjdbf please deactivate and reactivate your Creative Suite 6 installation.