In this step you define a calculation base for overhead calculation. The calculation base determines to which cost elements overhead is applied together.

A calculation base defines a group of **
cost elements** for which common overheads are
calculated. In each **
controlling area** , you assign individual cost elements
or cost element intervals, or origins or origin intervals, to
calculation bases.

- For
**production overhead costs**, you can differentiate between fixed and variable costs for the calculation base. In this way, you can charge the fixed and variable portions of the activity price differently for**activity types**.

- For
**material overhead costs**, you can differentiate the materials used. If you want to define different material overhead costs for particular raw materials, you can define origin groups and define your own calculation bases for particular origin groups.

**Requirements**

You have defined the origin groups:

**Note**

If you do not specify any origins for a cost element interval, the SAP System considers all the origins in the relevant interval.

**Activities**

To define a calculation base, proceed as follows:

1. Choose "**New
entries**" to create a new calculation base.

2. Enter any four-character key you
want, and a name for the new calculation base.

3. Select a row and choose
"Detail"

4. Enter the individual cost elements
or cost element groups.

If you have subdivided your cost
elements into origins, you can also specify individual origins or
origin intervals.

5. Save your entries.