Include Material Overheads in Maintenance Expense

You can now include the overheads attached to components used in a maintenance work order as part of the maintenance expense.

Let's consider an example of maintenance work order for which a component and resource were reported. Currently, the overhead component debits the Expense accounting line type which leads to under-reporting of the total maintenance expense.

Distributions - Current Behavior

With this change, the overhead cost element will debit the Maintenance Expense.

Distributions - Enhanced Behavior

To include the material overheads in Maintenance Expense, you need to create an overhead rule on the Manage Accounting Overhead Rules page with the absorption type set to Include in Work Order.

Manage Cost Accounting Overhead Rules

Including the material overhead in the maintenance expense will ensure that maintenance expenses are accurate.

Steps to Enable

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Manufacturing and Supply Chain Materials Management  No Longer Optional From: Update 24C

• Feature Name: Include Material Overheads in Maintenance Expense

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.

Access Requirements

Users who are assigned a configured job role that contains these privileges can access this feature:

• Create Cost Distributions (CST_CREATE_COST_DISTRIBUTIONS)
• Review Cost Distribution (CST_REVIEW_COST_DISTRIBUTIONS)
• Manage Overhead Rules (CST_MANAGE_ACCOUNTING_OVERHEAD_RULES)