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Accounting Planning Overhead Cost Center

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Overhead Cost Controlling component enables you to plan, allocate, control, and monitor overhead costs. It is an important preparation for a strong profitability analysis, as well as for a precise product costing.

By planning in the overhead area, you can specify standards that enable you to control costs and evaluate internal activities.

All overhead costs are assigned to the cost centers where they were incurred, or to the jobs that triggered them. The SAP system provides numerous methods for overhead allocation. Using these methods you can allocate the overhead costs true to their origins. Some of the overhead can be assigned to cost objects with minimum effort, and converted to direct costs.

At the end of a posting period, when all allocations have been made, the plan (target) costs are compared with the corresponding actual costs, based on the operating rate. You can make a source-based analysis of the resulting target/actual variances, and use the analyses for further managerial accounting measures within Controlling.

Along with timesaving automatic allocations, the integration of Overhead Cost Controlling in the SAP system environment minimizes entry of actual data and reduces the work involved in planning.

Transaction Code (Tcode):

OKKS - Set Controlling Area
KP04 - Set Planner Profile
KP26 - Change Activity Type/Price Planning
KP46 - Change Statistical Key Figure Planning
KP06 - Change Cost Element/Activity Input Planning
KSA8 - Plan Accural Calculation for Cost Centers
KSWB - Execute Plan Periodic Repostings
KSVB - Execute Plan Distribution
KSUB - Execute Plan Assessment
KPSI - Execute Plan Reconciliation
KSPI - Calculate Plan price
KSBL - Cost Centers : Planning Report
KSBT - Activity Type Price Report SAP SE (Systems, Applications & Products in Data Processing) is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. SAP is headquartered in Walldorf, Baden-Württemberg, Germany, with regional offices in 130 countries.The company has over 293,500 customers in 190 countries.

In 1973, the first commercial product was launched. It was called SAP R/98 and offered a common system for multiple tasks. This permitted the use of a centralized data storage, improving the maintenance of data. From a technical point of view, therefore, a database was necessary.

In 1976, SAP GmbH was founded, and moved its headquarters the following year to Walldorf, Germany. Three years later, in 1979, SAP launched SAP R/2, expanding the capabilities of the system to other areas, such as material management and production planning. In 1981, SAP brought a re-designed product to market.

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India election 2019: Kashmir takes center stage | DW News
20 Apr 2019
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