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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Direct Cost Applied an...
Small and medium business | Business Central, N...
Suggested Answer

Direct Cost Applied and Overhead Applied

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Posted on by JE-20081519-0 3,833
Hi:
 
In Business Central's General Posting Setup, what are the Direct Cost Applied and Overhead Applied accounts used for and are they Balance Sheet or Income Statement accounts?
 
Thanks!
 
John
Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Suggested answer
    AndrewThomas81 Profile Picture
    AndrewThomas81 627 on at
    Consult the following:
     
     
    They are income statement accounts.
     
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 99,983 Super User 2026 Season 1 on at
  • Suggested answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 14,683 Super User 2026 Season 1 on at
    Hello John,
    The Direct Cost Applied and Overhead Applied accounts in General Posting Setup are used mainly in manufacturing/assembly postings to record applied production costs. Direct Cost Applied captures the applied labor or direct capacity cost (for example work center or resource time), while Overhead Applied captures the applied indirect or overhead manufacturing cost during production or assembly posting. These accounts act as the balancing side of inventory/WIP postings when costs are applied from capacity or resources, and they are typically set up as Income Statement (P&L) accounts such as manufacturing or cost-of-goods accounts rather than Balance Sheet accounts.
     
    Regards,
    Oussama Sabbouh

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