Basic Settings for Product Cost by Period

Here you make general system settings for the Product Cost by Period component. These include:

In this step you create keys to separate materials assigned to the same cost element . This allows you to apply overhead for each cost element and origin, rather than just for each cost element.
In this step you create overhead groups for each valuation area and assign them to overhead keys. You can categorize overhead according to the materials to be costed by entering an overhead group in the material master of the product to be manufactured and creating conditions in the costing sheet that refer to the overhead key.
In this step you create costing sheets . A costing sheet determines how your company's overhead is charged.
The costing sheet determines
If you want to use Activity-Based Costing in the Product Cost by Period component, create a process template. In your planned data, the process template links Activity-Based Costing to preliminary costing; in your actuals, it forms the basis for the allocation of process costs to cost objects.