Question

Material overhead with posting M44

F
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  • FABPO
  • Do Gooder (Partner)
  • 4 replies

Hello,  I would like to apply material overhead on good issue on production order only on purchase inventory parts.

Si i made the following settings:

 

 

When i launch the cost part on manufactured part, i obtain the following cost with 10% material overhead

But when i did the issue of a purchased inventory part on a production order, the 10% is not calculated on average price but on estimated price.

 

Is anybody knows how we can have the Material overhead calculated on average price (51,56)?

Thanks in advance for your help

2 replies

M
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Userlevel 6
Badge +12

Hi,

For your Material OH Cost Bucket 1001 you should use Cost Element Source 500 - Total Cost, instead of 110.

And then you should connect the Cost Bucket 1001 to your purchasing cost template (P-110 in this case). So don’t modify your cost templates for your manufactured parts (unless you don’t want to include any material overhead cost for your sub-assemblies). 

Then calculate cost in costing.

Followed by copy costs into cost set one.

Then next shop order issue transaction should use the rule behind cost element 500, and use the inventory part unit cost when create the material overhead posting line for the component.

***

Material Overhead Cost Buckets is somewhat special. In the cost calculation they show up as level cost on the parent level in the product structure.

Hope this helps,

Mats

F
Rank
Badge +2

Thanks, 

Your answer was very helpful

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