Material OH based on Total PO Cost and changes in Material OH rate

Hi Everyone,

Good day.

We badly need help regarding below:

1. We have defined material overhead where:

    a. Level = Item Category

    b. Item Type = Buy Items

    c. Basis = Total Value

(Applies to all items whether lot-controlled or not.)

  

     From this, we expect that upon PO receipt, material OH will be computed based on the total purchase price (e.g., (10pcs @ 1,000) x 0.02 = 200). However, it was computed based on the item (e.g., 10pcs x 0.02 = .2 ).

2. There will be cases when the material OH rate will change. So we go to Setup>Sub-Elements>Defaults and change the rate. Then we create new PO and perform receiving. When we check the material transactions, material OH was still computed based on the initial (old) rate defined. Another one, say we have changed the rate while there are still PO open for receiving, should the material OH will be computed on the old rate or the new rate? In short, is the change applicable to new PO or new Receipts?