Manufacturing overheads rates


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A manufacturing overheads rate is the amount of indirect manufacturing cost assigned to each unit of a cost driver. Each consumed cost driver unit causes the manufacturing cost to change by the amount determined by a related manufacturing overheads rate.

For example, if your cost driver is labor hours, you can set the manufacturing overheads rate to $100 per labor hour. Then, each consumed labor hour will increase the manufacturing cost by $100.

In 1C:Drive, manufacturing overheads rates are involved in the production processes. They are used to calculate overheads incurred in manufacturing operations. The overheads are included in the cost of finished goods.

A manufacturing overheads rate can apply either to the entire company or to a specific department.

1C:Drive stores all manufacturing overheads rates in the Manufacturing overheads rates list. To open it:

  1. Go to Production.
  2. Under Production, click Manufacturing overhead rates.
The Manufacturing overheads rates list is only available if the Enable Production subsystem checkbox is selected in Settings > Production.

In this list, you can:

Viewing manufacturing overheads rates

To view manufacturing overheads rates:

  1. Go to Production.
  2. Under Production, click Manufacturing overhead rates.

The list displays the details for all manufacturing overheads rates. The details may vary depending on the list settings. The following details can be displayed:

  • Date. The effective date of the manufacturing overheads rates. The rates apply from this date and until new rates with a later effective date are registered.
  • Number. The manufacturing overheads rates document ID.
  • Company. The company to which the manufacturing overheads rates apply.
  • Allocation method. The manufacturing overheads allocation method specified for the company. One of the following:
    • Plantwide allocation (PA). A single manufacturing overheads rate applies to the entire company.
    • Departmental allocation (DA). An individual overheads rate applies to each department.

To quickly find a manufacturing overheads rates in the list:

  • Sort the list by any column by clicking its header. To change the sorting order, click the header again.
  • Search the list using the search field above the list.

Creating manufacturing overheads rates

To register manufacturing overheads rates:

  1. Go to Production.
  2. Under Production, click Manufacturing overhead rates.
  3. Click Create.
  4. Specify general details:
    • Select Company.
    • Fill in the remaining fields as necessary.
  5. On the Rates tab, add manufacturing overheads rates:
    • Click Add and fill in the rate details.
  6. Repeat step 5 to add as many manufacturing overhead rates as required.
  7. Optional: On the Additional information tab, specify additional information.
  8. Click Post and close.

Editing manufacturing overheads rates

To edit manufacturing overheads rates:

  1. Go to Production.
  2. Under Production, click Manufacturing overhead rates.
  3. Double-click a manufacturing overheads rate line.
  4. Edit the fields as described in Creating manufacturing overheads rates.
  5. Click Post and close.

Manufacturing overheads rates fields

General details

To learn about the general details of a manufacturing overheads rates document, see the following table:

Field Description
Number The manufacturing overheads rates document ID.
It is automatically generated when you post the manufacturing overheads rates. You can edit it.
You can find manufacturing overheads rates by ID in the Manufacturing overheads rates list.
Date The effective date of the manufacturing overheads rates document. The rates apply until new rates with a later effective date are added.
The current date is filled in automatically when you create the manufacturing overheads rates, but you can change it manually.
Company A company to which the manufacturing overheads rates apply.
The list of companies is based on the Companies catalog.
Allocation method The company’s manufacturing overheads allocation method.
This field is read-only. You can edit it in the company’s accounting policy.

Rates tab

The Rates tab of a manufacturing overheads rates document contains the list of manufacturing overheads rates that apply to a company or a department.

To learn about the Rates tab fields, see the following table:

Field Description
Business unit A department or warehouse that the rate applies to.
The list of business units is based on Departments and Warehouses catalogs.
It is only available if Allocation method is set to Departmental allocation (DA).
Cost driver The target cost driver. The manufacturing overheads rate will apply to each unit of this cost driver.
The list of cost drivers is based on the Cost drivers catalog.
GL account A GL account for registering manufacturing overheads.
The list of GL accounts comes from the Primary chart of accounts.
Expense item An expense item the manufacturing overheads rate is related to.
The list of expense items is based on the Income and expense items catalog.
Rate A manufacturing overheads rate.

Additional information tab

The Additional information tab of a manufacturing overheads rates document contains optional information that might be useful to the persons processing the document.

To learn about the Additional information tab fields, see the following table:

Field Description
Note Additional information about the document.
Created by The 1C:Drive user who created the document. It is not editable.

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