How to understand the production overhead rates in 1C:Drive
Question: I have set up the Manufacturing overhead rates for production in the 1C:Drive configuration, but the cost of the produced goods seem higher than expected. Why is this happening?
Answer: First for a better understanding of all the attributes and settings for the manufacturing overhead rates document please read the documentation here: https://kb.1ci.com/1C_Drive/Guides/1C_Drive_User_Guide/Production/Manufacturing_overheads_rates/.
To summarize the manufacturing overhead rates is the approximated price per unit of an Operation, preformed in the Work-in-progress document, established by the cost factor.
If in the Manufacturing overhead rates document, more than one rate will be assigned to a cost group, all this rates will be added and multiplied by the units of the operation preformed.
For example:
In the Manufacturing overhead rates document the user adds two lines for the same cost driver:
In this case, the expenses will be created as two different lines in the Accounting journal entries.
The total cost of per unit of an operation with the specified cost driver will be equal to 18 EUR (Given that euros is the currency of the company), thus increasing the price of the good produced.
To avoid complications with the overhead rates, it is recommended to created specific cost drivers for specific operations.