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    Dev Thota
    Unable to calculate overhead rule cost in cost management
    Topic posted September 11, 2019 by Dev ThotaGold Trophy: 10,000+ Points, tagged Cost Management, Financials, Fusion, General Ledger, Inventory & Cost Management Analytics Cloud, OTBI, Payables, Public Sector, Tip, White Paper 
    44 Views, 6 Comments
    Title:
    Unable to calculate overhead rule cost in cost management
    Summary:
    Unable to calculate overhead rule cost in cost management
    Content:

    Our business needs to add a freight to a PO in OSP manufacturing, as there is no direct way we have created a "overhead accounting rule" and assigned a rate to it as shown in screen shot. I ran all the transfer ESS jobs and create cost accounting distributions. When I am reviewing the cost accounting distributions I couldn't see the overhead distribution/cost.

    Can any one help me out on this?

    Version:
    19C
    Image:

    Comment

     

    • Argishti Zakharyan

      Hi Dev,

      Did you set up Manage Overhead Cost Element Groups?

      If not, create a new group name and add your overhead freight element.

      Best regards

       

    • Ravi Kanth Vuddagiri

      1. Assuming you have created a PO receipt and interfaced inventory transactions to Cost Management

      2. I see Start date for OH Rate is from 9/11/2019. Receipt should be interfaced on or after this date.

      You will find OH in your case Freight as a addl cost element in Review Cost Accounting Distributions > Cost Distributions sub tab in addition to Material

    • Srinivasa Raghavan

      Can you confirm if you have chosen "Purchase Order Receipt Into Work Order" for the Transaction Type? For overheads to apply on overhead receipts, you have to use this transaction type.

      Srini

    • Ravi Kanth Vuddagiri

      Dev is expecting to add 15% as Freight OH on all PO receipts into Inventory. In this case Purchase Order Receipt would be the correct Transaction Type. Any good reason for suggesting to select Transaction Type 'Purchase Order Receipt Into Work Order' ? 

      • Srinivasa Raghavan

        Hi Ravi,

        I read this statement from Dev "Our business needs to add a freight to a PO in OSP manufacturing" as a need to add overhead to OSP purchase orders. If you want to add 15% freight OH for *all* purchases, you can leave the "Transaction Type" blank and this rule will be applied for all Purchase Receipts.

        Thanks,

        Srini