Overhead costs are a cost which cannot be assigned directly to the cost objects. It is defined into two parts
1: Direct overhead costs.
2: Indirect overhead costs.
I have faced the below given problem and for some time I was unable to find the proper solution for overhead costs. And after devoting some efforts I found the proper solution.
The problem I faced given below:
Month Jan: Raw material is costed with material cost 100 and Overhead cost 10 (Qty based O/h), Total cost is 110
Month Feb: Raw material is costed with material cost 110 and Overhead cost 10 (Qty based O/h), Total cost is 120
How to avoid Overhead cost 10 in the month of Feb without removing Overhead group from Material master. So basically cost should be same as Jan i.e. 110.
Read more information on ERP( Enterprise Resource Planning)
Firstly you have to change your information record manually each one by one. Or you can do it in a mass too.
In which list that info record you are changing by purchasing Debt weekly, monthly or periodically should be maintained.
In that way you can easily check do not cost flag that will not take a long time for sure or you can do it in a mass that will take couple of minutes. In other case if you want to change the PIR at the time of change then you have to changed that list and uncheck the do not cost flag.
As far as do not cost flag materials are concerned FG release will not be impacted by the flag on lower level of materials cost, As it will consider existing cost of RM. infect it is a standard practice to check do not cost flag you wanted to avoid in Cost run for RM.
That input we used to direct or provide totally based on SAP output. There should be some logic and input to get a desired result.