What is Production Lots - Overhead Absorption in SAP SRD-FIN-INV - FIN-Inventory?

SAP Term: Production Lots - Overhead Absorption

• Component: SRD-FIN-INV

• Component Name: FIN-Inventory

• Description: A work center view where you perform overhead runs for production lots, which allocates overhead to the production lots based on overhead rules.

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• Key Concepts: 
  Production Lots - Overhead Absorption is a component of SAP's Financial Inventory Management (SRD-FIN-INV) module. It allows companies to absorb overhead costs associated with production lots into the cost of the goods produced. This helps to ensure that the cost of goods sold is accurately reflected in the company's financial statements. 
  
  How to use it: 
  Production Lots - Overhead Absorption can be used to calculate the cost of goods sold for a given production lot. The overhead costs associated with the production lot are absorbed into the cost of the goods produced, and this cost is then used to calculate the cost of goods sold. This helps to ensure that the cost of goods sold is accurately reflected in the company's financial statements. 
  
  Tips & Tricks: 
  When using Production Lots - Overhead Absorption, it is important to ensure that all overhead costs associated with a production lot are accurately accounted for. This will help to ensure that the cost of goods sold is accurately reflected in the company's financial statements. 
  
  Related Information: 
  For more information on Production Lots - Overhead Absorption, please refer to SAP's Financial Inventory Management (SRD-FIN-INV) documentation. Additionally, there are many online resources available that provide detailed information on how to use this component of SAP's Financial Inventory Management module.