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tools&die depriciation
2 years ago  ::  Oct 21, 2011 - 1:01PM #1
duduna1
duduna1
Posts: 1
How to handle tools and die depriciation and how to allocate it to product costing
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2 years ago  ::  Oct 29, 2011 - 10:55AM #2
PaulOvigele
PaulOvigele
Posts: 45

Hi,


Please provide more information here.


Depreciation normally flows to product costing either directly (from depreciation charged to a production cost center) or indirectly (via an assessment to the production cost center). The production costs are then abosorbed into the production order at a standard activity rate. There is then an over/under absorption of production costs which are transferred to the production order, CO-PA (via an assessment) or to the material (if you use material ledger).


Regards


Paul
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9 months ago  ::  Oct 21, 2012 - 9:10AM #3
vaithy123
vaithy123
Posts: 1

Dear Paul,


Depreciation for tools & dies can be as a % to the original cost.  Then what you say is OK.   As you will be aware, a tool or die can be used to produce a single material.  The life of a tool or die is driven by the number of components that can be taken out of it.  SAP has provided a method known as "Unit of production". 


But how do we link it to each asset line item and account the actual quantity of material produced against too or die.  I am not aware of such a facility.


You may please throw some light on this.

Moderated by Kristine Erickson on Nov 06, 2012 - 11:19AM
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