Fusion CST: Overhead Rate Not Applying As Part Of Resource Costs
(Doc ID 2232228.1)
Last updated on MARCH 24, 2017
Applies to:Oracle Fusion Cost Management Cloud Service - Version 22.214.171.124.0 and later
Information in this document applies to any platform.
Customer have overhead rate defined as follows
Absorption basis - Percentage of Resource Costs
Overhead Rate Type - Work Center
Work Center = XYZ
Cost Element = Overhead
Overhead Rate = 350%
User have a resource in XYZ work center let say ABC and resource rate is $17.5
User have a routing as follows :
Work Center XYZ
Type - Labor
Usage = 8 hrs
Resource Rate = $17.5
When user do rollup Costs
The total cost is $140
Resource Cost for ABC = 17.5*8 = 140
However, the expected Overhead rate $ 490 (140 * 3.5 ) is not seen.
The total expected Rollup cost should be = $630.00
User not seeing the overhead rate as part of rollup cost
User expect 350% of Resource Cost ABC should be part of rollup cost , how to resolve this?
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