Detailed Overheads lets you group and analyse your Overhead and Indirect Costs for purchasing and manufacturing, providing you with more flexibility and insight into your inventory costing.
This app automatically calculates overhead amounts on posting of Purchase Invoices, Manufacturing Output for Items or Work/Machine Centres with Overhead Lines.
You can easily create, adjust and remove the Indirect Cost % and Overhead Rates using the Standard Cost Worksheet.
What are overheads?
Overheads refer to ongoing expenses incurred by a business, that are not directly tied to the production of goods or services. Some examples include:
- Electricity to run machines
- Freight of purchased goods
- Rent
- and more…
Tracking overheads effectively is crucial for maintaining financial health and profitability, as they can impact the overall competitiveness of a company.
Overhead Groups
Create Overhead Groups with specific posting Accounts for the Overhead Applied Account for each type of Overhead, and apply these Overhead Groups to Items for purchasing, and Work/Machine Centres for manufacturing.
Detailed Overhead Value Entries
With each Invoice for purchases or Output for manufacturing, Detailed Overhead Value Entries are created, letting you analyse what makes up your Overhead costs, and track the recovery of the costs more closely.
