What Is Overhead Cost And Overhead Project

Costs, as you may very well be aware, are direct or indirect. The indirect costs - such as costs on welfare, subsidies, canteen, energy, transportations etc. are called over heads. Overheads are again classified into : (1) Production overheads (2) Commercial & Administrative overheads - This is dependent on where the incidence of cost occur.

Overheads are generally calculated as a percentage of direct costs such as labour / material.

Overhead projects - Projects are essentially of three types in SAP-PS system - 
(1) Customer project
(2) Investment Project 
(3) Overhead projects.

Projects which are created to track and control overheads in an enterprise are called overhead projects.  Example :- Travel expenses for a period. If you create a project such as this, it will enable tracking and controlling of travel expenses cost centre-wise, department-wise, employee-wise.

To summarize: Overheads occur in every enterprise. But some enterprises may choose to create a project to control certain specific overheads. Such projects are called overhead projects.
 

My Client want to change the % Overhead rate periodically. We are maintaining this in SPRO - Controlling. 
Let me know the T. Code for this. 

We maintain overheads rate in costing sheet.

Use transaction KZA1

Material Overhead system looks for material master --> Costing2 tab where we define material overhead key. 

In Config-> Product cost we assign a overhead key to a overhead group.

In costing sheet row for material overhead - we maintain Overhead rate assigned to a Overhead key.

We will see the actual OH - T.Code - KSI4

Please refer SAP Note 164222 - Transporting overhead rates of the costing sheet 

S_ALR_87008275 - Define Percentage Overhead Rate 

Once you change percentages, this will affect all the transactions, like material cost estimate, actual overhead calculation production order and if you use same cost sheet in other objects like networks, wbs, internal order etc.
 

Which table can I see overhead rate which are created under costing sheet?

In tables A... you find the "condition records" for different kind of overhead

i.e. 

- A122 is for overhead according to profit centers

- A014 according to overhead key

- A013 is general

and so on

In table KONP you find rates for the "condition records" found in A... tables
 

In which table overhead rate and percentage is maintained for transaction code KZZ2 ?

The tables are:

T685 - Conditions: Types

KONX - Overhead Rates: Help Table for Variable Fields

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