3247959 - Unexpected Overhead Amount in Production Lots - Overhead Absorption When the Production Lot has By-Product(s)

Production Lot AAA(AAA represents the ID of the Production Lot) has By-Product(s).

You execute Production Lots - Overhead Absorption for Production Lot AAA.

You find that the overhead amount is not equal to the amount of all inputs(i.e. goods issues and service confirmation) multiplied by the overhead rate.

SAP Business ByDesign

1. Go to Inventory Valuation work center.
2. Go to Production Lots - Overhead Absorption view.
3. Select the run in question and click on Log Result.
4. View Processed Successfully view.
5. For Production Lot AAA, you find the Overhead Amount is not equal to the amount of all inputs multiplied by the overhead rate.

The overhead absorption relies on all the inputs i.e. goods issues and service confirmations to calculate the absorption for a production lot. However, if there are by-products these are also considered for calculating the inputs which forms the basis.

For example, the total amount of all inputs for production lot AAA is 1,000 LC. And there is one by-product which is having a value of 100 LC. Then, it will cause the base value decrease to 900 LC. If you apply the overhead rate 10%, the system calculates the overhead amount as 90 LC.

System works as designed.

Overhead amount,  Production Lot, Overhead Absorption, Overhead rate, by-product, 间接费用吸收，吸收金额 , KBA , SRD-FIN-INV , Inventory , Problem