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Set up activity based costs

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Activity based costs represent non-material costs (such as machine or labour costs) that can be associated with production. Set them up as resources in the program. While Anywhere Mobility Solutions type of resource can be assigned as an activity based cost, certain fields on the resource card must be filled in for the activity based cost to have Anywhere Mobility Solutions meaning.

Steps

  1. In the search box, enter Resources, and then choose the related link.

  2. On the Home tab, in the New group, choose New to create a new resource.

  3. In the No. field, enter a number to identify the resource.

  4. In the Type field, choose the type that best describes the resource.

  5. In the Base Unit of Measure field, enter the unit of measure code for the unit by which the resource's usage is measured.

  6. On the Invoicing FastTab, in the Direct Unit Cost field, enter the direct cost of the resource. Enter this value in terms of the resource's base unit of measure.

  7. In the Indirect Cost % field, enter a value that represents the overhead cost of the resource.

    The resource's overhead cost is calculated by applying this value as a percentage of the resource's direct unit cost. If a resource's direct unit cost is $100 and the indirect cost percentage is 20%, the resource's overhead cost is $20.

  8. Fill in the other fields on the resource card.

For more information about the activity based costing functionality in this solution, see Activity based cost detail posting.

For more information about assigning routings to activity based costs, see Assign routing information to activity based costs.