Different Overhead Cost applied at item level instead of work center level
Recently a new Work Center was created in Oracle Manufacturing in order to support a financial discount that the Company wanted to provide to their business partner (RD) on chemicals that we were making for them in Walker. This was done by creating a new work center with separate work definitions with the overhead rate on them.
Our understanding is that the overhead rate is applied at the Work Center so in order to allow the discount only on the RD item we had to create a second Work Center that physically runs across the same manufacturing line as the Company product. However, having two systematic Work Centers that run across the same manufacturing line physically takes away our ability to capacity plan.