Applying Overhead or Shop Costs
Parts, labor, tires, and other costs posted are added to the cost of the work order. If you also want to include the cost of unbilled shop expenses on work orders (nuts, bolts, lubricants, rags, etc.), there are two methods of doing so. One method uses the facility file; the other uses the customer file. Read the following sections describing each option and then set the "Overhead Fac/Cust Flag" switch to FACILITY or CUSTOMER based on the method to use (SSM, switch 34).
Facility Overhead
Facility overhead adds additional costs to the work order based on the percentages defined in the facility file and the cost of transactions posted to the work order. By using facility overhead, you can set various overhead percentages, for various types of transactions, for various facilities.
Suppose a work order processed in facility 00001 had, for simplicity, $100.00 each in parts, labor, tires, and miscellaneous costs. The total work order cost is $400.00. Using the rates shown in the sample facility record, an additional cost of $30.00 would be added to the work order for a total cost of $430.00.
ITEM | ITEM COST | OVERHEAD $ ADDED |
|
Parts | $ 100.00 | $ 10.00 |
|
Labor | $ 100.00 | $ 10.00 | TOTAL WORK ORDER COST |
Tires | $ 100.00 | $ 10.00 | $ 430.00 |
Miscellaneous | $ 100.00 | $ 0.00 |
|
| ------------ | ----------- |
|
TOTAL | $ 400.00 | $ 30.00 |
|
Customer Overhead
Customer overhead adds additional costs to the work order based on the percentage defined in the Shop Supplies field and the cost of the labor transactions posted to the work order. Various shop supply rates can be charged for various customers.
ITEM | ITEM COST | OVERHEAD $ ADDED | |
Parts | $ 100.00 | $ 0.00 | |
Labor | $ 100.00 | $ 15.00 | |
Tires | $ 100.00 | $ 0.00 | |
Miscellaneous | $ 100.00 | $ 0.00 | |
| ------------ | ----------- | |
TOTAL | $ 400.00 | $ 15.00 | |
|
|
| |
TOTAL WORK ORDER COST |
|
|
|
| $ 415.00 |
|
Again, suppose a work order processed in facility 00001 had, for simplicity, $100.00 each in parts, labor, tires, and miscellaneous costs. The total work order cost is $400.00. Using the rates shown in the sample facility record, an additional cost of $15.00 would be added to the work order for a total cost of $415.00.