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Note: The View Overhead Recovery Settings option allows you to view but not amend the settings.
The calculation of overhead recovery applies in Bill of Materials, Estimating and Works Orders. For an accurate breakdown of overhead costs, you must enter overhead recovery settings for non-stock items, setup expenses and other expenses before costing BOMs, or entering estimates and works orders.
Overheads for labour, machines, tools, subcontract and operations are entered in cost headings. Bill of Materials calculates overhead recovery using the percentage (%) applied to the resources. The settings entered in the Overhead Recovery Settings window apply in the Estimating and Works Orders modules.
Note: If nominal integration is switched on in Stock Control, nominal postings are made automatically when you complete works orders. Postings are made to the nominal codes set up in Nominal Settings and Maintain Cost Headings.
Open: Manufacturing System Manager > Settings > Overhead Recovery Settings.
Manufacturing accumulates the totals for overhead recovery as costs are entered.
Set the percentage rate to 0 (zero) to suppress overhead calculations for a cost type.
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