Rework Work Order Overhead Absorption with Perpetual Average Costing

We have a business requirement related to Rework Work Orders in Oracle Fusion Manufacturing and Cost Management.

Current Setup

• Work Order Type = Rework
• Finished Good (FG) item is enabled for Perpetual Average Costing
• Overhead should be applied based on the plant/work center where the rework activity is performed and completed

Requirement

When a rework work order is completed, we need the system to:

1. Apply the work center overhead charges incurred during the rework process.
2. Capture the overhead separately under the appropriate cost element.
3. Update the finished good's inventory value with the rework overhead cost.
4. Ensure the overhead becomes part of the item's