I want to ask the following question:
Is the costing sheet is only an option on the system to view the cost of the item as “View only” or it can affect the cost the is actually posted to the inventory and GL?
In other words , if I need to add overhead to the production orders , can I use the “Costing sheet” for this or I need to use another option?
Yes. The costing sheet is used to add costs to an item, as well. When you create a costing sheet, you can add in surcharge nodes which give you the ability to do percentage or fixed overhead. Calculating a new cost price for this item will use those values shown on the costing sheet.
There are cost categories on the route, but the costing sheet is built to add overheads, whether manufactured or purchased. Start playing with the nodes and cost group structure and run the calculations on a BOM /Formula to see the impact.