In this lesson we define the scope of overhead cost controlling. We also introduce the cost assignment objects that are used to collect overhead costs (cost center and WBS element) and look at how they are maintained in the system.
We then explore selected planning options in Overhead Cost Controlling. Finally, we look at how actual values are posted on cost centers and WBS elements.
Current Process Step
The relevant process step (summarized Scope Items) is highlighted in the overview below.
Overhead Cost Controlling - Overview
In the Bike Company, we have costs that arise as a direct consequence of producing a single bike, for purchasing bike components and labor costs in the production line.
However, in addition to these direct product costs, there are costs that arise from the normal operation of our business: labor costs for business departments (for example, finance and marketing departments), energy and telecommunication costs, and costs associated with running the employee canteen.
Overhead Cost Controlling in SAP S/4HANA provides structures, master records, and processes that help to plan, track, assign, allocate, and analyze these costs.
Keisha has prepared a video to introduce you into some examples of processes performed in Overhead Cost Controlling. Please watch it, before you move on.
Test Your Knowledge
Please have a look at the question below and think about what you have learned so far. Do you know the answer? Select the card to flip it and see if you were right.