Add Estimate Overheads

Explanation

Use this activity to add material, delivery or general overheads to estimate items. Overheads can be added on top items or individual components.

Overheads defined on top items can be applied to all the components below by defining the overhead as not part specific. For components below a top item, only part specific overheads can be added.

Material and delivery overheads are calculated based on the direct material cost of the purchase items. While delivery overheads are added as level cost of purchase items, material overheads are added as level cost of parent items when the purchased items are consumed. General overheads added on top items are only appllied on total material cost of manufactured items. To add general overheads to purchase items, it should be added as a part specific overhead on the specific purchase item.

For inter-site handled items, you should define overheads separately. Overheads added on the demand site does not affect the item costs of the supply site.

Prerequisites

Estimate item with reference item type Product should exist for an estimate header.

System Effects

As a result of this activity the overheads are added to the estimate components in the estimate cost calculation.

Window

Estimate

Related Window Descriptions

Estimate/Estimate Items/Product

Procedure

Add Overheads to Top Item

1. Select the top item that you want to add overheads in the tree structure of the Estimate window.
2. Right-click on the header of the Product tab and click Overheads.
3. In the Add Estimate Overheads dialog box, create a new record.
4. Select the overhead type to be added from the drop down list.
5. Enter a fixed and/or percentage overheads to be added.
6. Select whether it is a part specific overhead by selecting Part Specific check box.
7. Click OK.

Add Overheads to Specific Components

1. Select the component that you want to add overheads to in the Estimate/Items/Product tab
2. Right click and click Overheads.
3. In the Add Estimate Overheads dialog box create a new record.
4. Select the overhead type to be added from the drop down list.
5. Enter a fixed and/or percentage overheads to be added.
6. Click OK.