Here you make general system settings for the Product Cost by
Period component. These include:
Define origin groups
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
Define overhead groups
In this step you create overhead
groups for each
valuation area and assign them to overhead keys. You
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
direct costs overhead is applied to (such as material
costs or production costs)
under what conditions overhead is calculated (such as for each
controlling area or plant)
the amount of the percentage or quantity-based surcharge,
depending on these conditions
what object (cost center, order) is credited, and under what
cost element, when actual costs are posted.
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.