Assign Overhead Rates to an Item
To set up overhead rates
You can create overhead categories to which you can assign a general business posting group and general product posting group. Then you can assign the overhead categories to an item, and define when the overhead rate applies, and to what location. Assigning an overhead rate category to an item allows the overheads to be broken down across multiple accounts.
Choose the Search icon, enter overhead rates, and select Overhead Rates.
On the Home tab, choose New.
Populate the following fields:
Code: Enter a code to represent the overhead rate.
Description: Enter a description of the overhead rate.
Gen. Bus. Posting Group: Select the general business posting group that will be used when you post transactions that use this overhead rate.
Gen. Prod. Posting Group: Select the general product posting groups that will be used when you post transactions that use this overhead rate.
Close the page.
To assign overhead rates to an item
You can assign the overhead categories to an item, and define when the overhead rate applies, and to what location. Assigning an overhead rate category to an item allows the overheads to be broken down across the multiple accounts that were defined for the overhead category.
Choose the Search icon, enter items, and select Items.
Double-click the item that you want to assign overhead rates to.
On the Costs & Posting FastTab, click the Overhead Categories field. The Item Overhead Rates page opens.
On the Item Overhead Rates page, populate the following fields:
Overhead Rate Code: Select the overhead rate. This determines the posting groups that will be used.
Location Code: Select a location if you only want the overhead rate to apply to certain locations.
Overhead Rate: Enter the overhead rate, which is the amount that will be applied for each unit of measure code. The Overhead Rate (Base UOM) field is automatically populated.
Unit of Measure Code: Select the unit of measure code. The value can only be the base UOM or a weight UOM.
If you do not want the overhead to be calculated based on weight, select the base UOM.
If the item is a variable weight item, and you want the overhead to be calculated based on an item's weight, then select a weight UOM. If a weight UOM is entered, then the value in the Overhead Rate (Base UOM) field is calculated based on the quantities defined for the item's unit of measure.
Starting Date and Ending Date: If you want the overhead rate to apply to a certain time, enter a starting and ending date.
Click Close.
The total of the overhead rates is returned to the Overhead Categories field on the Item card.
The Overhead Categories field on the Stockkeeping Unit Card page is also populated, and shows the total overhead, but if any of the overhead rates are for the stockkeeping unit's location, then that overhead rate will override the same overhead rate code with a blank location.