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Need A Solution For Having Material Overhead Defaulted In Cost Accounting For Discrete Organization Items (Doc ID 2651093.1)

Last updated on FEBRUARY 01, 2023

Applies to:

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


Need a solution for having Material Overhead defaulted in Cost Accounting for Discrete Orgs Items - Finished Goods having BOM.

The Material Overhead cost component should be calculated based on the % setup in EBS and applied on the value of Material Cost Component.
We need a solution to this problem if we can achieve it by setting the percentages based on Item level or if not possible then Category or Org Level.

If there is an option to achieve this by setting up Routing in BOM for the Finished Goods and that can be used while we do a cost rollup to calculate the Material Overhead cost component for the Finished Goods Item.

Need the best way to handle this.
This is impacting our business as we have already provided the same solution for Raw Materials, Components and BULK Items which are in Process Mfg Org and that has an option to setup % Overhead which is attached to Material Overhead Cost Component and we have setup the % values for each Item/Org Combination in system and it works fine and meets the business objectives but the items (Finished Goods) which are in Discrete Org having BOM are not having that functionality and causing business loss in calculating the material Overhead for these items in Discrete Org.


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