Overhead Codes

Select an overhead code.

Overhead codes are used as follows:

• To value selected stock movement types.
  The column that defines the formula or fixed rate to be used for the calculation is defined by the OVECOLSTK - Stock overhead column parameter (STO chapter, VAL group).
• To determine the cost price or the production cost price calculation.
  Selected functions use the overhead code for the following:
• To value work center overheads associated with the valuation dimension.
• To value overheads for materials or semi-finished products.

The overheads column that contains the formula or fixed rate to be used in the cost price calculation functions is defined by parameters. For standard cost calculations the OVECOLSTD - Standard calc overhead column parameter (GPA chapter, COS group) applies.

You can modify the column to be applied before running the calculation.

The calculation methods is used to determine if the overheads are calculated either by cascade or as a total.

• total: the expense total is carried out on each nature with the initial calculation basis.
• cascade: each time, the calculation basis is increased with the expenses calculated for the previous nature.

For example:

The overhead OH1 corresponding to following natures NAT1 (5%) and NAT2 (15%)

Product A price: 100 Eur

Total mode

Cost calculation : 100 + 100x0.05 + 100x0.15 = 120 Eur

Cascade method

Cost calculation : 100+ (100 + 100x0.05)x0.15 = 120.75

The application method only concerns the material costs ; it determines if the overheads are posted on the receipt to stock or on the issue from stock.
The posting method on receipt to stock signifies that the costs are applied during the calculation of the cost of the product itself.
The posting mode on issue from stock signifying that the costs are absorbed by the parent product that is uses (consumption) the product having a cost code with this method. The costs are included in the cost (production cost) of the parent product.

During the multi-level calculation of a cost, the overheads of each level can only be posted on the material, labour, sub-contract part of a cost, in no case can the overheads be posted on other overheads (cascade principle for multi level overheads).

This code is used to identify the currency for a site, BP, etc. It is managed in the currency table.
The currency proposed by default is that of the budget.
The exchange rate type applied is based on the BUDTYPCUR - Budget conversion rate type (BUD chapter, CMM group) parameter setting.

It is recommended to use the ISO coding during the creation of a new currency.

This grid is used to distribute an overhead code over a maximum of six different overhead natures.

For each nature, it is possible to associate up to 4 formulas for different calculations (A, B, C, D).

Each column (A, B, C, or D) can be dedicated to a specific cost calculation (standard, revised standard, budget, simulation, PC) and to stock movements.
This assignment is made possible by the overhead parameters:
- OVECOLSTD for the standard cost calculation,
- OVECOLCUT for the updated standard cost calculation,
- OVECOLBUD for the budget cost calculation,
- OVECOLSIM for the simulated cost calculation,
- OVECOLMFC for the WIP cost price or valuation price calculation.
- OVECOLSTK for the valuation of stock movements: Miscellaneous receipts, Receipts, WO receipt and WO issue.
 
For each column, it is possible to associate either one fixed cost (in the previously specified currency), or a calculation formula giving a coefficient that will be applied to the calculation basis.

This field is used to specify if the overheads are triggered from the document or from the original document:

• if it is from the document; the overheads are applied to each production or receipt tracking,
• if it is from the original document, the overheads are applied to:
• the work order: the overhead calculation is carried out upon PCP, Therefore, the overhead WIP in the industrial cost price and accounting are not correct when the WO is in progress. Only the overheads included in the WIP during the work declaration processes are displayed. Consumption overhead costs are only displayed on calculating the PCP.
• the order: overheads are distributed over each receipt pro rata to the received quantity with respect to the ordered quantity.

Overheads can be fixed. Four fee amounts can be entered by nature; they correspond to the various expense types, their descriptions can be customized. The fee amount is excluded with the formula: it can only be entered if the neighbour formula code is empty.

Code used to identify the calculation formula. A calculation formula is a short code calling on an expression to evaluate a result used in various functions of the product.

Overheads can be fixed. Four fee amounts can be entered by nature; they correspond to the various expense types, their descriptions can be customized. The fee amount is excluded with the formula: it can only be entered if the neighbour formula code is empty.

Code used to identify the calculation formula. A calculation formula is a short code calling on an expression to evaluate a result used in various functions of the product.

Overheads can be fixed. Four fee amounts can be entered by nature; they correspond to the various expense types, their descriptions can be customized. The fee amount is excluded with the formula: it can only be entered if the neighbour formula code is empty.

Code used to identify the calculation formula. A calculation formula is a short code calling on an expression to evaluate a result used in various functions of the product.

Overheads can be fixed. Four fee amounts can be entered by nature; they correspond to the various expense types, their descriptions can be customized. The fee amount is excluded with the formula: it can only be entered if the neighbour formula code is empty.

Code used to identify the calculation formula. A calculation formula is a short code calling on an expression to evaluate a result used in various functions of the product.