About manufacturing overheads based on material [AX 2012]

Updated: December 13, 2010

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

A manufacturing environment that has only bills of material (BOM) information and no routing information can calculate manufacturing overheads that are based on material. The manufacturing overheads are expressed as indirect cost-calculation formulas for a surcharge percentage, and they are defined in the Costing sheet setup form. A cost group that is assigned to material components acts as the basis for a calculation formula. The calculation formulas can be defined for individual products or for item groups that are assigned to products, to provide more flexibility in calculating manufacturing overheads that are based on material.

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