Cost Management - EBS (MOSC)

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Should Material Overhead be calculated on Non Recoverable Tax

edited Jun 10, 2015 3:08AM in Cost Management - EBS (MOSC) 1 commentAnswered

Hi All,

In our facility we user R12 Oracle Application with India Localization. We have defined Material Overheads (MOH) for items to be calculated on PO receipts on Total Value basis. Recently we had to apply patch for some other reason and after that we have observed that MOH is calculated on PO Item Price only and not on the non - recoverable tax (NRT). Earlier, before the patch application, the MOH also calculated on NRT. Fundamentally, should  Material Overhead be calculated on non recoverable tax or only on the PO item price sans tax?

Thanks & Regards,

Bhargav.

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