Capacity overhead costs

Hi All ,

Manufacturing overhead represent overhead related to additional materials costs which can be solved by creating the cost groups , define the percentage in Costing sheet , then attach that cost group to the item , then if we consume that material then system would automatically post the overhead cost and add to production item ( FG).

In the same way client has some capacity overheads also is related to capacity and client is asking when post the route journal /capacity journal , then these overhead costs should be added to production item (FG).

a) Can we attach more than one cost group to the item as client has different costs for same item … how to handle that in Ax 2012 R2 ?

b) where we need to define the capacity overhead costs in Ax2012 R2? and how does it post to FG item … when user post the route journal ?

Thanks in advance.

a) capacity overhead is driven by resources, not items, you attach a cost category per resource for the sort of time, so you can have three different types per operation if you want to go to that depth, then in the costing version you can set overheads by cost cost group tied to the category. (Doing this without opening the software but you can go down to a very finite level. This then rolls up per item.

b) You add the cost categories to the route, you add the overhead to the costing version against labour.

It posts to the FG item when you post the route journal, unless you are standard costed, then the cost posted is standard and it posts variance and the variance types get posted differently as per the posting configuration.