September 21-24, 2020 | San Diego, CA
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Case Study: Complex Overhead Allocation Using Template Allocation

Two different clients in two different industries, pet food manufacturing and lumber milling, presented requirements for allocating overhead to product cost that could not be readily met with activity allocation on a routing or through costing sheets. This session will explain how the customer requirements were met using templates. The session will illustrate what led to the decision to use templates starting with the existing customer excel models and how these were translated into SAP configuration and master data elements to support template allocation. This session will demonstrate how templates are created and the configuration and master data steps required to make them usable for Product Costing and for Cost Object Controlling. Finally, we will see the results of the template allocation process in both standard cost estimates and in production and process order costs.

Join this session to:

  • Learn how templates offer a flexible tool to apply overhead to product cost and actual production
  • Explore how templates allow you to model more complex overhead allocations than activity allocations or costing sheets
  • Understand how you can use activation conditions in the template for more flexibility
John Pringle

John Pringle is the SAP FICO Competency Group Lead with Illumiti, an SAP Partner and a leading niche SAP systems integration and management consulting company based in Toronto, Canada. He is the product owner for the SAP all-in-one Mining Solution, an Illumiti all-in-one SAP solution. John has worked in SAP consulting for over 15 years and previously worked for PwC, IBM and Accenture. John is the author of Practical Guide to SAP Profit Center Accounting. Contact John at jpringle@illumiti.com. 

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