Overhead Rate

[former_member267332]

Hi All,

Need your advice.

Pls go to Tcode: KZA1 and select costing sheet then select "overhead rate".

I would like to update the OH rate to the new rate.

Existing OH rate is maintained as per screen shot below. The date is from 01.04.2009 until 31.03.2999 with 1 %.

Now, user would like to update the % to 2 % starting from 1st July 2013.

Option A

Shall i maintain as 01.04.2009 to 31.03.2999 to 2%?

or

Option B

Shall i maintain as 01.04.2009 to 30.06.2013 to 1% and 01.07.2013 to 31.03.2999 to 2%?

Which method is better as i might afraid it will pick up the incorrect value if maintain wrongly.

For example,

The existing OH rate is 1 % and if using option A change the rate to 2% from 01.04.2009 to 31.03.2999 then in July if the user would like to perform the tasks which is belongs to June (which is suppose 1%) then due to we already maintain as 2% from 01.04.2009 to 31.03.2999 then the calculation would be wrong.

If we use option B, when user run the OH then they do not choose particular OH rate, they just run all.

As such, it would be good if you can kindly advice the right option for this. 

Thanks for the advice.

Best regards,

Joo

[rajneesh_saxena · Accepted solution]

Dear Joo

In my opinion Option B is always better and safe. Because in real times it happens many times that in July  the user would like to perform the tasks which is belongs to June. So to be safe and to remain in cool mind, go with option B.

Regards

Rajneesh Saxena

[ajaycwa1981]

Hi

Option B is correct, because this is what reflects the true situation

In my opinion, you should keep end date as 31.12.2013 instead of 2999...Usually, overhead rates are changed every year

Br, Ajay M