GP10SP5 Mfg NOT installed. Using Inventory BOM.
What is the best way to adjust COGS for an overhead variance (whether over-applied or under-applied) ? Is there a specific process in GP to do this? Thanks.
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That is correct sir.
OH is setup as a 'Services' type item. I think I got this tip from one of your blogs. :) So since this item is never received, I assume using the Adjust Cost Utility won't work.
Adjust Cost utility is for adjusting the cost on Inventory Receipt layers. Is your overhead item in the BOM a Sales Inventory Item Type?
what about the adjust cost utility in inventory? Never used it so I'm not sure what impact it will have or whether it's the correct tool to use for this.
Got it. Thanks for the explanation. You'll need to do this as a GL entry. There's no facility to make such an adjustment in Inventory.
Frank, OH was estimated at the beginning of the year (rent, utilities, etc.) , base was labor hours but could be anything – the point is to fully absorb the OH into the cost of the items being produced. On each BOM OH was included as a line item. Now it’s the end of the year and we will be calculating the variance from estimate to actual OH costs. When there is a variance, COGS needs to be adjusted. My question is, is procedure to make this adjustment? GL entry? Or through the Inventory module?
How are you getting an Overhead variance using Inventory BOM? What is overhead being calculated on?
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