Define Percentage Overhead

An overhead determines the conditions under which overhead is applied to an object.

In this step you define percentageoverhead, such as 25% in controlling area 0001. In addition, you can define quantity-based overhead ($100 per piece).

Percentage overhead is a good idea if, for example, you want to calculate quantity-independent overhead on costs for particular cost elements in a cost center. Quantity-based overhead, on the other hand, is calculated per unit of measure in a cost element.

You can combine the two by, for example, assigning a 10% overhead to a cost element and an additional $3 per hour.

Overheads are limited in duration and can be adapted to meet your requirements as part of current settings.

You must assign a condition to each overhead. Examples of such conditions include the contents of particular order fields. The system prescribes which fields you can use. For example: if you enter "plant" as a condition, a defined overhead is calculated for each plant.

Using this condition, the system can access the relevant condition fields in the appropriate condition tables. All the condition tables delivered in the standard contain the fields "Controlling area", "Overhead type" and at least one field from the order master (see below).

Plan, actual, and commitment overhead can be calculated. The overhead type distinguishes between the three.

Standard settings

The SAP standard system contains overhead with the following conditions:

To define order-dependent overhead, you create an overhead key and enter this key in the order.

To define product-dependent overhead, create an overhead key and link this key to an overhead group. This group is then entered in the costing view of the material master record.

Activities

To define a percentage overhead, proceed as follows:

1. Choose "Create" to create a new overhead.
2. Enter a four-character identification code and a description for the new overhead and assign a condition to it.
3. Select the row and choose "Detail"
4. Specify the individual overhead rates.
Each record consists of a validity period, several condition fields, which are taken from the condition tables, as well as an amount that is to be assigned to the cost bases as overhead.
5. Save your overhead.