Business

Allocation Basis for Different Resources in Oracle ERP Systems

Allocation of overheads is always in arguments. It differs from company to company. However, the allocation Basis for different resources in Oracle ERP Systems is shown here as examples.

 

Resource Class Resource Cost Component Class Allocation Basis Comments
Direct Labor Labor Direct Labor Labor Hrs
Labor Overhead Labor Overhead Labor Overhead Labor Hrs
Costing Resource Granulation Costing Resource Granulation Cost Machine Hrs The overheads related to Granulation will be captured based on the ‘Department’ segment in the COA 
QAD QAD Quality Overhead Machine Hrs QAD cost can also be allocated on the basis of Quality hours.
Warehouse Overhead Warehouse Overhead Resource Warehouse Overhead Machine Hrs The allocation of Warehouse overhead to the product cost will be on the basis of the machine hours
GPO (General Plant Overhead) GPO Resource GPO Machine Hrs The allocation of Warehouse overhead to the product cost will be on the basis of the machine hours

Show More

Related Articles

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker