Defining Source and Target Variable Overhead Components Associations

The overhead percentage is applied to each of the defined source component class costs and analysis codes. The result is stored in the target component class and analysis code.

In the source component class field, you can select component classes with the usage types of material. In the target component class field, you can only select component classes with the usage type of Overhead Detail.

The source cost component class, analysis code, and overhead code must be a unique combination. You can map this unique component class and analysis code combination to any target cost component class and analysis code. This flexibility lets the same source cost component class and analysis code to be mapped to different target cost component class and analysis code for different overhead codes. Similarly, different source cost component class and analysis code can be mapped to the same target cost component class and analysis code for different overhead codes.

When the cost rollup process is run, the system looks for any percentage overhead record defined for any of the ingredient items. If a overhead percentage is defined, then the system applies the overhead percentage to the cost of the source cost component class, and analysis code combination of the ingredient item and then posts the amount under the target cost component class and analysis code.

To define source and target variable overhead components:

1. Navigate to the Source and Target Variable Overhead Components window.

Overhead Source

2. Enter the Component Class code that identifies the cost component to be applied to the percentage overhead. In the source component class field, select component classes with the usage types Material, Resource, Overhead, Expense Allocation, or Standard Cost Adjustment. Required
3. Enter the code that identifies the cost Analysis Code to be applied to the percentage overhead.
4. Enter or select a Overhead code to be used where percentage will be applied to the specified cost component.

Overhead Target

5. Enter the code that identifies the cost component to store the result of the percentage overhead as it is applied to the source cost component in Component Class. In the target component class field, you can only select component classes with the usage type Overhead Detail. Required
6. Enter the code that identifies the cost Analysis Code to store the result of the percentage overhead as it is applied to the source analysis code.