Overhead Absorption Type

When defining the overheads, you must mention the absorption type for the overheads. Depending on the overhead type, plant overhead or work center overhead, the available absorption types are listed in this table.

Absorption Type	Plant Overhead	Work Center Overhead
Fixed	A fixed overhead value is applied to the unit cost.	A fixed overhead value is applied to the unit cost.
Percentage	Overhead is calculated using the specified percentage of the material costs of the buy items at this level.	The overhead is calculated using the specified percentage of the resource costs.
Percentage of material cost at all levels	Overhead is calculated using the specified percentage of the material costs of buy items and sub-assemblies.	Not applicable.
Percentage of total cost excluding overhead at this level	Overhead is calculated using the specified percentage of the total cost minus the overheads at this level.	Not applicable.
Percentage of total cost including overhead at all levels	Overhead is calculated using the specified percentage of the total cost including the overheads at all levels.	Not applicable.