Add Estimate Overheads

Explanation

You can add material, delivery or general overheads to estimate items. Overheads can be added on top items or individual components. To add overheads to a top item, click Product, then Overheads. To add overheads to a component, select the component on the Components tab and click Overheads.

Overheads defined on top items can be applied to all the components below by defining the overhead as not part specific. For components below a top item, only part specific overheads can be added.

Material and delivery overheads are calculated based on the direct material cost of the purchase items. While delivery overheads are added as level cost of purchase items, material overheads are added as level cost of parent items when the purchased items are consumed. General overheads added on top items are only appllied on total material cost of manufactured items. To add general overheads to purchase items, it should be added as a part specific overhead on the specific purchase item.

For inter-site handled items, you should define overheads separately. Overheads added on the demand site does not affect the item costs of the supply site.

Prerequisites

Estimate item with reference item type Product should exist for an estimate header.

System Effects

As a result of this activity the overheads are added to the estimate components in the estimate cost calculation.