Indirect Cost % Field, Item Table
Specifies the percentage of the item's direct unit cost that makes up indirect costs, such as freight and warehouse handling associated with the purchase of the item.
The contents of this field is copied to purchase lines and item journal lines and will be used to calculate the value in the Unit Cost (LCY) field on purchase lines and the Unit Cost field on item journal lines, as follows:
Unit Cost (LCY) = Direct Unit Cost * (100% + Indirect Cost %)
Unit Cost = Unit Amount * (100% + Indirect Cost %)
The Indirect Cost Percentage field is closely related to the Overhead Rate field where you can define the indirect cost (overhead) as an absolute amount.
Tip
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Parent Tables
| Table | Location |
|---|---|
| Item Table | Inventory |