How to add Production Overhead as a Percentage

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Posted on by skotaiku

Hello,

We are using Microsoft Dynamics NAV 2015. We are not using Routing in our Manufacturing Process. All we do is sum up the cost of Raw Materials, Packaging Materials and 35% as overhead to the sum of(Raw Materials +Packaging Materials). How do I achieve this in Nav 2015. Thanks and best regards.

Sunday

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Stefano Demiliani 37,166 Most Valuable Professional on at

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Not so clear your question. Do you need to calculate a cost to produce an item?

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skotaiku 66 on at

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Thanks for your response. I will use hypothetical figures to explain my requirements. Ours is a cosmetics company. The same composition can be used to produce different product sizes e.g 200g, 75g, 450g etc. So, I have the following cost profile

Chemical 1,000

Other Addictive 1,000

Packaging Materials 2,000

Production Overhead (35% of 4,000) = 1,400

The problem is that the production overhead varies and thus it will be added to the BOM at the point of production but NAV seems not to allow it.

Best Regards

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azelaya59 2,807 on at

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Have you tried the "Overhead Rate" on the Item Card?

This sounds like it could satisfy your requirement.

https://navhelp90.fenwickcloud.com.au/main.aspx?lang=en&content=T_27_99000757.htm

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skotaiku 66 on at

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Thanks Alfredo. I have considered it but it does not take percentage value. It would have been alright if it takes a percentage value.

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skotaiku 66 on at

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Thanks for the link. I just opened it and seems it might serve us in calculating the overhead. But will it show the overhead separately in production module. Thanks for your kind effort.

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azelaya59 2,807 on at

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As a workaround, you could enter the actual value. In your example above, you say the Production Overhead is $1400.00. Just use that value in the field. If the other components are static, you shouild be fine.

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skotaiku 66 on at

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Thanks so much to everyone who has helped me on this post. My appreciation goes specially to Mr. Alfredo. I have tried the suggestions given and it worked well. I added the Production Overhead as % on the item card ' Indirect Cost % ' field. Nav calculated it and included it in the production cost as manufacturing Overhead. Thanks to all.

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Bodhi 558 on at

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Indirect Cost %

navhelp90.fenwickcloud.com.au/main.aspx;content=T_27_28.htm

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