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Re: Depreciation not flowing into Standard cost estimate

Hi Satan

 

Do you want 100 USD depreciation per product or 100 USD depreciation distributed amongst various products

 

I think you want the later.. Correct?

 

If yes, calculate depreciation overhead rate manually.. Example, you planned for some 100 machine hrs in KP26.. With 100 USD of depreciation, maintain overhead rate as 1 USD/Hr in KZM2 and it will absorb exactly 100 USD in the Product

 

Similarly, the actual posted depreciation must be divided by actual confirmed Machine hrs to arrive at the actual Overhead rate

 

Hope this helps!!

 

Br, Ajay M


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