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Overheads in Product cost collector


During a month, expenses (Costing expenses to be loaded on to the

production cost centeres) booked in GL’s are allocated through

distribution and assessment cycles, among production cost centers

against activity types.

So in Product cost by period scenario, will the monthly expenses

(Costing expenses as explained above) should be equal to the summation

of product cost collectors’ overhead expenses?

In other words For example:

Monthly overheads in March : 1000 Rs (incurred in GL’s)

Total overheads to be carried on to the product : 1000 Rs

Overheads distributed and allocated : 1000rs

Sum of overheads in production cost centers of all the product cost

collectors (of the materials manufactured in March) : 1000 ??

So in a given month my expenses distributed and allocated should match

with my total overheads as shown in product cost collectors against

activity types?

During a month we follow these steps:

1. Run Actual Distribution cycle

2. Run Actual assessment cycle

3. Actual cost Splitting

4. Actual Price calculation.

5. Revaluation at actual Prices (CON2)

6: WIP calculation

7: Variance calculation

8: Settlement



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