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Incorrect Calculation for Resource Overhead (Doc ID 2047530.1)

Last updated on JANUARY 11, 2017

Applies to:

Oracle Cost Management - Version 12.1.3 and later
Information in this document applies to any platform.


On : 12.1.3 version, WIP Costing

Getting wrong calculation for resource overhead.

expect the calculations:

Resource value: resource qty x resource rate = 5x 20.07 = 100.35
Resource overhead to be: 100.35 x 6.33% = 6.3522

The issue can be reproduced at will with the following steps:
1. work order
2. Operation and resource:
3. Now based on Oracle user guide, when the basis is ‘Resource value’, as above, the ‘Rate or Amount’ is treated as a % number.
4. The value of overhead is not 6.33% but its 6.33 times the resource value.

We have basis defined as 'Resource Value' and in the 'Rate or Amount' field we have value as 6. So overhead should be 6% of the resource value. But we are getting overhead amount to be 6 times the resource value instead of 6%.


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