Create Overhead Adjustments

Explanation

Use this activity to create overhead adjustments. An overhead adjustment can be entered per company, accounting year, cost source, posting group and overhead type. The overhead adjustment will be made by adding additional postings that represent the adjustment made to all the transactions that include a cost detail with the overhead in question. In addition to updating transactions throughout the application, there will also be updating of the connected objects like customer orders, projects, and work orders. Overhead adjustments can be made for the following overhead types:

• Delivery Overhead
• General Overhead
• Shop Order Labor Overhead
• Machine Overhead 1
• Machine Overhead 2
• Material Overhead
• Sub Contract Overhead
• Work Order Labor Overhead
• Project Labor Overhead

Prerequisites

This activity has the following prerequisites:

• Cost sources for which the overhead adjustments should be done must be defined.
• Posting Cost Groups for which the overhead adjustments should be done must be defined.
• Overhead accounting year must be used on the company.
• The basic data for adjustment reason must be entered.
• To use accounting year end date as posting date, the inventory value statistics must not have been calculated for the accounting year date. Note: This does not apply to work order labor and project labor overheads.

System Effects

The effect of the overhead adjustment can be seen as additional postings added to the affected transactions. It is also possible to review the total effect of on adjustment by searching for a specific periodic OH adjustment ID in the page Supply Chain and Manufacturing Postings Analysis.

Pages

Create OH Adjustments

Activity Diagrams

Create Overhead Adjustments