Material overhead to be calculated by the system in percentage (%) of item material cost.
Material overhead to be calculated by the system in percentage (%) of item material cost. Below is an example
> Suppose material cost of two purchased Items ‘ABC’ & ‘XYZ’ are $100 and $200 respectively.
>We will have 3 components of Material Overhead (MAT-OH) like 'Material Burden', 'Freight' & 'Imporst duty'
> Above these MAT-OH are not associated with PO so we can't configure as Landed cost
>System should be set up such that Material overhead (MAT-OH) to be calculated by percentage (%) of material cost, say 5% for ‘ABC’ and 8% for ‘XYZ’ item.
>So, Item cost will be for ABC = $100 + .05*100 =$105 and XYZ = $200+0.08*200 = $216
Please note this is not Overhead so that we ca have Plant/Work center wise % calculation.