Defining Fixed Overheads in Oracle Process Manufacturing (OPM)

An overhead is a cost associated with a resource other than the resource usage assigned in the routing.

Assume you need a laborer to clean MIXER after each use. To account for the cost of cleanup, instead of adding another component cost to each item that uses MIXER, you can assign an overhead to the items being produced by that laborer on MIXER. The overhead assignment would be the time it takes the laborer to clean MIXER multiplied by the cost per hour for the laborer.

Navigation:

OPM Financials > Fixed Overheads

To define Fixed Overheads:

Enter the Item code to which this overhead is going to assigned.

Enter a valid Calendar, Period code & Cost type.

Base Currency code field will display the base currency of the legal entity.

Overhead Details:

Enter the Resource code and Component Class code.

To know how to create a Resource click the following link  http://dj-oracleapps.blogspot.in/2014/02/creating-resources-in-oracle-process.html

Enter the Analysis code under which this overhead should appear in cost detail.

Enter the Qty of resource used in the production of this item in Resource Count. Ex: If it takes one worker to cleanup Mixer after each use, then enter 1. This number is multiplied by the Resource Usage to calculate the total resource usage.

Enter the amount of the resource used for this overhead in Resource Usage. Ex: If it takes 10 minutes for a worker to cleanup Mixer after each use, then enter 0.10

Enter the unit of measure in which the resource is yielded in Resource UOM.

Enter the amount of the item yielded in this production process during the entered .10 hours of resource usage in Item Quantity.

Enter the unit of measure in which this overhead is measured in Overhead UOM field.

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