Re: Undistributed balance in work centers

Hi Sushant

It depends on how you design your system..

If you are calculating actual activity price from the system (not Manual Price), do revaluation of Production orders using actual activity price and also calculate overheads based on actual expenses incurred and apply to Prod orders, there will be no Under / Over Absorption

To achieve zero balance in CC, you must

1) Allow Periodic Price in Version 0 (OKEQ)

2) Allow Revaluation of Prod Orders in Version 0 (OKEQ)

3) Allocate costs from Service CC to Prod Orders (Balance of Service CC Zero after this)

4) Calculate actual activity Price (KSS2, KSII) and do revaluation of Prod Orders, etc (CON2)

5) Calculate Actual Overhead rate (preferably Quantity Based) and maintain in KZM2. Apply actual Overhead (CO43)

After 5, Balance of Prod Orders will be zero too

Regards

Ajay M