Importance of Overhead class in SAP PS Module

In SAP PS (Project System), the overhead class plays an important role in managing project costs. It is used to group cost elements that are not directly associated with a specific work package or activity in the project.

The importance of the overhead class in SAP PS can be summarized as follows:

Cost Allocation: The overhead class is used to allocate indirect costs to the project. These indirect costs can include administrative overhead, depreciation, rent, and other expenses that are not directly related to a specific work package or activity in the project. By grouping these costs into an overhead class, it becomes easier to allocate them to the appropriate cost objects in the project.

• Cost Planning: The overhead class is also used in cost planning for the project. When planning project costs, it is important to include all indirect costs that will be incurred during the project. By using the overhead class, these costs can be easily identified and included in the overall project cost estimate.

• Cost Control: The overhead class is also used in cost control for the project. By tracking the actual costs associated with the overhead class, it becomes easier to monitor project costs and make adjustments as necessary. This can help ensure that the project stays within budget and that any deviations are identified and addressed in a timely manner.

• Reporting: The overhead class is used in reporting on project costs. By grouping indirect costs into an overhead class, it becomes easier to generate reports that show the overall project costs, including both direct and indirect costs. This can provide valuable insight into the project's financial performance and help stakeholders make informed decisions about the project.

In summary, the overhead class is an important element in SAP PS as it helps to allocate, plan, control, and report on indirect costs associated with a project. It is a powerful tool for managing project costs and ensuring that projects stay within budget and deliver value to stakeholders.