Defining Overhead Percentage

You can define the actual overhead percentage value for a given overhead code. The overhead percentage is defined for a given calendar, period, cost types, and overhead code. The overhead entities defined on the Overhead Selection Priorities window is used to define overhead percentages.

This window displays the GL Business Class and GL Product Line fields, if you had selected them as one of the priorities in the Overhead Priorities window.

To define overhead percentages:

1. Navigate to the Overhead Percentages window.
2. The Legal Entity displays. The overhead percentages you define using this window are assigned to the legal entity.
3. Enter the name of the cost Calendar (for example, enter 1997) for which overhead percentage is being defined. Required.
4. Enter the cost Period for which the overhead percentage is being defined. Required.
5. Enter Standard as the Cost Type code to be used. Only the Standard Cost type is supported. Required.
6. Enter or select a Overhead Code for which percentage will be specified. The system then looks for all the entities that have selection priorities assigned to them for the specified overhead code and legal entity for the given calendar and displays them. Choose any values for these priorities for which you are defining the overhead percentage. Required.
   
   Note: Depending on the specified Overhead Code, the system retrieves and displays all the entities that have selection priorities assigned to them on the Overhead Priorities window.
   
7. Enter the Percentage value associated with the overhead code and entities to be applied to items component costs. The cost components that the percentages are applied to are specified in the Source and Target Percentage Overhead Component window. When cost rollup is run, all the items specified for rollup belonging to the specified overhead selection entities will have the specified overhead percentage value applied to the costs. For example, if you enter 4% overhead value for the overhead code SHR, with Organization ORG1 and Inventory Organization WH1. When the cost rollup process is run, all the items belonging to the ORG1 organization and the WH1 inventory organization will have 4% overhead cost added to their costs.