Adding in a separate line item cost for material overhead (handling) that rolls up into assembly order (but is a separate field)

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Posted on by SammySevens

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Hi BC Community,

We would like to include a fixed percentage material overhead rate (think handling) to every item. For simplicity sake, we will use a fixed cost of 0.1 * item unit cost

We would like this cost to be rolled up into the assembly order (work order) , but also be separated from the direct unit cost of the item, and other labor costs as well.

A few thoughts are:

add a field to item table, overhead rate = direct unit cost * 0.1
This field should flow through the creation of an assembly order - and be rolled up into the final cost of the item
However, when running a report against the assembly order, this field should be a separate column - to segregate it from other costs such as direct unit cost, labor rate.

Appreciate your thoughts on this issue, and a possible approach.

Thank you!

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Inge M. Bruvik 1,111 Moderator on at

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To change the way Business Central handles and post Items cost is quite a huge task.

There is already a standard function that lets you add indirect cost to an item.

And you can also use the costing method of standard cost.

I think my approach would be to use the functionality that the standard system offers when it comes to costing and posting.

Then i would fix the reporting separately and maybe do a monthly of weekly recurring G/L posting if you want to split some cost elements in your accounting.

To build a add-on that lets you have new cost elements flow through the system and that handles all kinds of cost adjustments, physical inventory counting, return orders and all kinds of corrections that can happen in your system requires a lot of system design and a lot of work.

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