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My notes on the Overhead (AM202500) screen in the Acumatica Manufacturing Edition.
This screen is where you define the Overhead codes to be used by Bills of Material and Production Orders. Overhead can be defined as Fixed or Variable.
Type of Fixed: You set the Cost Rate here on the Overhead (AM202500) screen. When you use the Overhead on an Operation of a Bill of Material, the Factor field defaults to 1. Then, when you create a Production Order, the Cost Rate from the Bill of Material gets multiplied by the Factor from the Production Order to determine the Total Actual Cost on the Production Order. This happens when you release the first transaction on the Move (AM302000) screen against an Operation on a Production Order that has the Overhead defined. It only happens the first time so say you are producing a quantity of 3, but you do 3 separate Move transactions for 1 each, it will only trigger the Fixed Overhead cost on the first Move transaction. A transaction is created in the Cost Transactions (AM309000) screen to move the Fixed Overhead cost into WIP and create the corresponding GL Journal Entry.
Type of Variable: You set the Cost Rate here on the Overhead (AM202500) screen. When you use the Overhead on an Operation of a Bill of Material, the Factor field defaults to 1. Then, when you create a Production Order, the Cost Rate from the Bill of Material gets multiplied by the Factor from the Production Order and also by the Variable that was selected to determine the Total Actual Cost on the Production Order. This happens every time you release a transaction on the Move (AM302000) screen against an Operation on a Production Order that has the Overhead defined. Say you are producing a quantity of 3, but you do 3 separate Move transactions for 1 each, it will trigger the Variable Overhead cost on each Move transaction. Transactions are created in the Cost Transactions (AM309000) screen to move the Variable Overhead costs into WIP and create the corresponding GL Journal Entries.