How to set up Overhead Rates in Work Order for Sage 100
How to set up Overhead Rates in Work Order
Use WO, Setup, Operation Code Maintenance to define Overhead Rates.
Operation Code Maintenance provides you with flexibility in determining how costs and overhead are calculated and what general ledger accounts are used to post production costs. Operation codes define the various processes that are performed to manufacture the final product or parent item. Operation codes are defined separately for each work center to identify the factory or shop location at which operations are performed.
Overhead can be defined as Fixed or Variable in Operation Code Maintenance
Type the fixed overhead rates to charge. Fixed overhead can be used to allocate factory overhead costs that do not vary with the level of production, such as rent and taxes.
Type the variable overhead rates to charge. Variable overhead can be used to allocate overhead costs that vary with the level of production, such as electricity and other utilities.
Overhead can be applied to labor, material, and/or outside processing costs. By applying overhead based on hours, overhead is applied on labor only. By applying overhead based on cost, overhead is applied to labor costs plus any material and outside processing costs applied to this line.
If necessary, seek the assistance of Acute Data Systems to help provide assistance with this process.