This is third part of configuring Costing Sheet.

It  is important to understand that Cost allocation is part of the process of determining overhead rates. If this leads to an object being debited with actual costs, another object in Cost Accounting must be credited at the same time. This can be either a cost center, order or a business process. This type of posting is recorded under a secondary cost element of cost element category 41 (overhead rates) in the SAP System.

In this part, we will understand the third component of Costing Sheet i.e. Credits. 

This is second part of configuring Costing Sheet.

In this part, we will understand the second component of Costing Sheet i.e. Overhead Rates. The overhead rates are divided into Percentage Based and Quantity Based, we will see how it is to be defined.

The Costing Sheet is a part of Overhead under Product Cost Planning under Controlling Module of SAP. A Costing Sheet helps us in adding cost incurred on manufacturing of a product which is not possible using Activity Types. A Costing Sheet can be used in various purposes, but here we will be only looking into the creation of Costing Sheet and components required for the same.