Purchase Overhead

Use these two interrelated fields to determine the amount and type of increase to apply as the purchase overhead cost.

From the drop-down list in the second field, specify one of the two possible types:

• Amount: Use this option to specify a fixed amount for the purchase overhead cost.
• Rate: Use this option to specify the purchase overhead cost as a percentage of the current material cost.

Specify the amount for the purchase overhead cost using the first field:

• To use a fixed amount, specify the purchase overhead cost as a currency amount, using the domestic currency.
• To use a rate, specify the amount as a percentage of the current material cost.
  Note: The percentage must be entered as a decimalization of one (1). For example, to set the purchase overhead cost as 5% of the current material cost, specify 0.050 in this field.

If you set the Amount field to anything other than zero (0.000), then you must also assign values to the Purchase Overhead Applied and Purchase Overhead Variance fields.