Procurement - EBS (MOSC)

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How to book PO to involve material and material over head accounts

edited Nov 21, 2013 5:55PM in Procurement - EBS (MOSC) 8 commentsAnswered
 Hi Folks,

How to book PO to involve material and material over head accounts, please explain me the process in detail.


Note:- I tested the scenario as follow.

Create New Item

Assigned to Inventory Org (OU specific Org)

Created Item cost

Material cost: 100

Material Overhead: 10



Now create a PO  for quantity 1 price: 125

Received the material without making and price/quantity changes

When I check the Item cost system is displaying as : 165, how system has calculated the cost in this scenario.?

And We are expecting 125 should spilit as Material and material overhead accounts 9:1 ration = 125/10= 12.5= 107.5: 12.5 ratio

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