Question

Cost Elements for Overhead Triggers 141-Purchase Del OH Trigger 501-Material Overhead Trigger 502-General Overhead Trigger 601-Sales Overhead Trigger

  • 13 July 2022
  • 3 replies
  • 111 views
R
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  • ronhu
  • Hero (Customer)
  • 548 replies
Community,
 
Do you have experience in using below triggers, if you do, can you share it with me? 
 
Cost Elements for Overhead Triggers
141-Purchase Del OH Trigger
501-Material Overhead Trigger
502-General Overhead Trigger
601-Sales Overhead Trigger
 
Thank you.
Ron

3 replies

cperdue
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Ron-

I am unclear on the actual question.   We have utilized 141 & 601 in implementations.   The 141 was to add a 7% overhead to purchased materials.  The other was for royalties.

Best- Christy
R
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@cperdue appreciated your reply here.

we are trying to add the cost for quality in manufacturing, so we are looking for solutions in IFS.

There are mainly two sets of costs in quality in manufacturing

  1. Prevention costs or appraisal costs – Inspection costs etc  
  2. Nonconformance cost – Scrap, rework, process failure etc 

i am struggling with the driver of the cost. whether it could be cost element(TAC) or activity based costing in IFS.

Thank you.

Ron
cperdue
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Ron-

If you are utilizing shop orders, I would lean toward reporting inspection time/OH either within a work center cost/OH or as a separate routing step.   Scrap/rework/failures can also be reported/captured against the shop orders.  Your inventory valuation method is also a factor to consider.   

 

Best- Christy

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