Create Overhead Rates

Creating overhead rates is an optional step while defining the costing master data for the Conference Room pilot described in this guide.

The steps to create overhead rates are:

1. From the Home page, click Navigator > Supply Chain Execution > , click Cost Accounting.

2. On the Cost Accounting tab, select the Tasks tab.

3. Click Manage Overhead Rates in Cost and Profit Planning.

4. In the Manage Overhead Rates page, click the Create icon in the Search Results region.

5. In the Create Overhead Rate page, enter or select values in the following fields:

   • Scenario. Select the scenario that you had created earlier.

   • Plant

   • Overhead Rate Type. This can be Plant overhead or Work center overhead. Enter the Item or Item Category if you want to set up a plant overhead. Enter the Work Center and Resource Type, if you want to set up a work center overhead.

6. In the Details region, click the Plus icon to add a new row

7. Select a value for the following fields:

   • Cost Element

   • Expense Pool

   • Absorption Type

     Note: Rate and Value are two attributes that depend on the Absorption Type attribute.

     • Enter Rate (%) if Absorption Type is 'Percentage'.

     • Enter an Absorption value if absorption type is 'Fixed'.

8. Select Save and Close from the Save drop-down list.

9. Click Done.