What is production overhead in SAP CO - Controlling?

SAP Term: production overhead

• Component: CO

• Component Name: Controlling

• Description: The costs incurred in production that are not, or cannot be, assigned to particular cost objects.

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• Key Concepts: 
  Production overhead is a term used in SAP Controlling (CO) to refer to the costs associated with running a production process. This includes costs such as labor, materials, energy, and other indirect costs. It is important to track these costs in order to accurately measure the profitability of a production process. 
  
  How to use it: 
  In SAP Controlling, production overhead can be tracked by assigning cost elements to the production order. These cost elements can then be used to calculate the total cost of the production process. Additionally, production overhead can be allocated to different cost centers or profit centers in order to accurately measure the profitability of each area. 
  
  Tips & Tricks: 
  When assigning cost elements to a production order, it is important to ensure that all relevant costs are included. This will ensure that the total cost of the production process is accurately calculated. Additionally, it is important to ensure that all costs are allocated correctly in order to accurately measure the profitability of each area. 
  
  Related Information: 
  Production overhead is closely related to other terms such as direct costs and indirect costs. Direct costs are those that are directly related to the production process, while indirect costs are those that are not directly related but still affect the overall cost of the production process. Additionally, production overhead is also related to other terms such as fixed costs and variable costs. Fixed costs are those that remain constant regardless of the level of production, while variable costs are those that vary depending on the level of production.