Collaborative effort of Saurabh Goyal.
Overhead costs in maintenance refer to the indirect expenses associated with keeping assets, equipment, facilities, or infrastructure operational, but that are not directly tied to a specific maintenance task or job.
Why it matters?
Maintenance overheads affect the total cost of ownership of equipment.Businesses need to track and allocate these costs accurately to understand true operational expenses.Understanding overhead costs helps in making decisions on repair vs. replace, outsourcing, or investing in predictive maintenance tools.
This blog outlines the necessary process and configuration required to perform this calculation in the public cloud. It also highlights the associated constraints and provides guidance for customers and partners on how to proceed.
Define Costing Sheet (SSCUI 102922 Define Costing Sheets )
Define the material overhead rates for corresponding plant actual /planned
Planning Costing SheetProduction Costing Sheet
Configuration of the assignment costing sheet to valuation variant (SSCUI 102607 :Define Valuation Variants for Material Cost Estimates)
Assign planning costing sheet to valuation variant 006 and production costing sheet to valuation variant 007
Configure Overhead Costs value category for maintenance Order (SSCUI 103792 Maintain Value Categories)
Configure Value category for Maintenance orders. Create a new value category for Overhead costs
Assign relevant Cost element group to newly created value category (SSCUI 103806:Assign Cost Elements to Value Categories)
Overhead calculation as per costing sheet
As you create maintenance order, add material to operation and save, the planned overhead costs are calculated and same is reflected in the costs tab in Overhead costs value category.
In the backend the costing sheet is filled with the costing sheet which we assigned in the configuration SSCUI 102607 above as maintenance order is assigned with costing sheet.
In the below maintenance order we created, the material value is 120000 EUR and corresponding overhead costs according to the overhead rate 7% in the costing sheet will be 0.07*120000 = 8400 EUR
Planned costs updated under cost category overhead costs
Goods issue on the maintenance order
Goods Issue
Run overhead calculation actual
Material Overhead costs calculated
The same is reflected in actual costs for overhead cost category in the maintenance order
Actual overhead costs reflection on Maintenance Order
As illustrated in the scenario above, configuring the costing sheet within the valuation variant enables the business to calculate overhead costs effectively. However, this approach does come with certain limitations, which are outlined in the section below.
Constraints to the process:
Since the field is hidden, the process cannot be altered during runtime.
Available options:
Assignment of costing sheet to maintenance order type. Customer / partner can vote to the CIP request https://influence.sap.com/sap/ino/#/idea/333625For additional features, new request can be raised.
Thanks for your time and please share your valuable feedback and inputs in a comment below. Also kindly follow the tag SAP S/4HANA Cloud for Asset Management to watch similar content.
You can also post your questions at All Questions in SAP S/4HANA Cloud for Asset Management | SAP Community
Collaborative effort of Saurabh Goyal.Overhead costs in maintenance refer to the indirect expenses associated with keeping assets, equipment, facilities, or infrastructure operational, but that are not directly tied to a specific maintenance task or job.Why it matters?Maintenance overheads affect the total cost of ownership of equipment.Businesses need to track and allocate these costs accurately to understand true operational expenses.Understanding overhead costs helps in making decisions on repair vs. replace, outsourcing, or investing in predictive maintenance tools.This blog outlines the necessary process and configuration required to perform this calculation in the public cloud. It also highlights the associated constraints and provides guidance for customers and partners on how to proceed.Define Costing Sheet (SSCUI 102922 Define Costing Sheets )Define the material overhead rates for corresponding plant actual /plannedPlanning Costing SheetProduction Costing SheetConfiguration of the assignment costing sheet to valuation variant (SSCUI 102607 :Define Valuation Variants for Material Cost Estimates)Assign planning costing sheet to valuation variant 006 and production costing sheet to valuation variant 007Configure Overhead Costs value category for maintenance Order (SSCUI 103792 Maintain Value Categories)Configure Value category for Maintenance orders. Create a new value category for Overhead costsAssign relevant Cost element group to newly created value category (SSCUI 103806:Assign Cost Elements to Value Categories)Overhead calculation as per costing sheetAs you create maintenance order, add material to operation and save, the planned overhead costs are calculated and same is reflected in the costs tab in Overhead costs value category.In the backend the costing sheet is filled with the costing sheet which we assigned in the configuration SSCUI 102607 above as maintenance order is assigned with costing sheet.In the below maintenance order we created, the material value is 120000 EUR and corresponding overhead costs according to the overhead rate 7% in the costing sheet will be 0.07*120000 = 8400 EURPlanned costs updated under cost category overhead costsGoods issue on the maintenance orderGoods IssueRun overhead calculation actualMaterial Overhead costs calculatedThe same is reflected in actual costs for overhead cost category in the maintenance orderActual overhead costs reflection on Maintenance OrderAs illustrated in the scenario above, configuring the costing sheet within the valuation variant enables the business to calculate overhead costs effectively. However, this approach does come with certain limitations, which are outlined in the section below.Constraints to the process:Since the field is hidden, the process cannot be altered during runtime.Available options:Assignment of costing sheet to maintenance order type. Customer / partner can vote to the CIP request https://influence.sap.com/sap/ino/#/idea/333625For additional features, new request can be raised.Thanks for your time and please share your valuable feedback and inputs in a comment below. Also kindly follow the tag SAP S/4HANA Cloud for Asset Management to watch similar content.You can also post your questions at All Questions in SAP S/4HANA Cloud for Asset Management | SAP Community Read More Technology Blog Posts by SAP articles
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