What is overhead absorption in SAP SRD-FIN-COR - FIN-Cost and Revenue?

SAP Term: overhead absorption

• Component: SRD-FIN-COR

• Component Name: FIN-Cost and Revenue

• Description: The process of allocating overhead costs to cost objects based on overhead rules. This credits the cost center where the overhead costs were originally assigned.

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• Key Concepts: 
  Overhead absorption is a process used in cost accounting to allocate overhead costs to the products or services produced. It is a way of assigning indirect costs to the products or services that are responsible for incurring them. In SAP, overhead absorption is managed through the SRD-FIN-COR FIN-Cost and Revenue Accounting component. 
  
  How to use it: 
  In SAP, overhead absorption is managed through the SRD-FIN-COR FIN-Cost and Revenue Accounting component. This component allows users to assign overhead costs to specific products or services, as well as track and analyze the costs associated with each product or service. The component also allows users to set up cost centers and cost elements, which are used to track and analyze overhead costs. 
  
  Tips & Tricks: 
  When setting up cost centers and cost elements in SAP, it is important to ensure that they are properly configured so that overhead costs can be accurately allocated. Additionally, it is important to regularly review and update the cost centers and cost elements in order to ensure that they are up-to-date and accurate. 
  
  Related Information: 
  For more information on overhead absorption in SAP, please refer to the official SAP documentation on the SRD-FIN-COR FIN-Cost and Revenue Accounting component. Additionally, there are many online resources available that provide detailed information on how to set up cost centers and cost elements in SAP.