Overhead

Form ID: (AM202500)

This form provides you with the ability to specify the overhead costs associated with the bills of material and production orders. Overhead rates are applied to operations by using the Bill of Material (AM208000) form. They allow you to apply overhead costs to the cost of the production order. For example, you may want to associate an administrative burden cost on each production order that is processed.

Overhead Table

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.

Column Description
Overhead Unique overhead ID which can be any alphanumeric code up to 10 characters in length.
Description Description of the overhead.
Type The type of Overhead that will determine how the overhead will be applied to the production order.
  • Fixed: Will apply a single fixed cost to every production order regardless of how large the order is or how long the production order runs.
  • Variable by Labor Hours: Will apply a cost depending on the amount of labor applied to the production order.
  • Variable by Labor Cost: Will apply a cost depending on the cost of the labor applied to the production order.
  • Variable by Material Cost: Will apply a cost depending on the cost of the materials applied to the production order.
  • Variable by Machine Hours: Will apply a cost depending on the amount of machine hours that are applied to the production order.
  • Variable by Quantity Completed: Will apply a cost for each item completed on the production order.
  • Variable by Total Quantity: Will apply a cost for each item completed or scrapped on the production order.
Cost Rate This is the unit cost associated with this overhead rate. When the overhead is entered on a bill of material or production order, as factor is also entered. The overhead cost is the cost rate multiplied with this factor. A user can use the same overhead ID on two different production orders where the factor may be different.
Account This is the GL account that will be credited with the applied cost. The debit entry will be to the WIP account.
Subaccount This is the GL subaccount that will be credited with the applied cost. The debit entry will be to the WIP Subaccount.