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Does anyone have any experience of applying a material overhead cost per batch for Shop Order/Part costs?

We want to apply the cost of using an adhesive to stick components together,  for different parent parts have a different adhesive and hence cost.

I’ve tried using Part Specific Overheads but although I can create the cost element, I can’t get IFS to recognise it on the drop down when I try adding it.

There be something basic I am doing wrong - any ideas?

Hi @KIMKIMANDREW ,

 

When you create a new Cost Element make sure the Overhead Type is either Material Overhead, General Overhead or Sales Overhead. Also, the Cost Element Source should be either 501, 502 or 601.
Only the Cost Elements that falls in to above conditions are shown in Part Specific Overheads.

I don’t want to use a cost element source as the new overhead is a fixed value per batch.

I tried setting them up as a Material overheads...

Example Overheads

 

Hi @KIMKIMANDREW ,

 

With this setup you have different material overheads. Looking at your requirement I believe you will run in to multiple issues with this. Are you going to add all of these to a common Cost Template ? Then how are you going to decide which manufacturing part should get which overhead cost ? Also are these the only 4 material overheads you are going to have ? What if new manufacturing parts come in and new/different overhead costs to be added to cost calculation ?

 

How about a setup like below;

You have one material overhead for adhesive

 

Now, based on the manufacturing part you decide what should be the adhesive overhead cost

 

Hi @KIMKIMANDREW ,

 

With this setup you have different material overheads. Looking at your requirement I believe you will run in to multiple issues with this. Are you going to add all of these to a common Cost Template ? Then how are you going to decide which manufacturing part should get which overhead cost ? Also are these the only 4 material overheads you are going to have ? What if new manufacturing parts come in and new/different overhead costs to be added to cost calculation ?

 

How about a setup like below?

You have one General Overhead for adhesive

 

Now, based on the manufacturing part you decide what should be the adhesive overhead cost

 

This looks promising. So I need to add the cost element TI-AD into  a cost bucket and then add that tothe relevant manufacturing cost template for it to take effect?

This looks promising. So I need to add the cost element TI-AD into  a cost bucket and then add that tothe relevant manufacturing cost template for it to take effect?

Make sure to create the cost element as a “General Overhead” type.
Yes, after adding to Cost Template you may calculate the part cost to see the effect.
 

Perfect! 

Thanks for your advice - that’s really got me out of a hole :relaxed:

Perfect! 

Thanks for your advice - that’s really got me out of a hole :relaxed:

You are welcome :slight_smile:

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