How to Update Work Order Overhead Rate

Use this workflow to update the hourly overhead rate used by work order labor costing.

When to use this workflow

Use this workflow when accounting or operations has approved a new hourly overhead rate for manufacturing labor.

Because this affects future work order cost calculations, coordinate rate changes with accounting and manufacturing leadership.

Before you start

You need:

• admin or executive access.
• The approved overhead rate per labor hour.
• Agreement on when the new rate should begin being used.

Screen path

Dashboard > System Settings > Accounting > Work Order Overhead Rate

Steps

1. Open System Settings.
2. In Accounting, select Work Order Overhead Rate.
3. Enter the approved value in Overhead Rate ($ per hour).
4. Select Save Rate.
5. Wait for Overhead rate saved successfully.
6. Close the setting.

What happens behind the scenes

PAX validates that the rate is present and greater than zero.

If an active overhead rate exists, PAX updates that rate. If none exists, PAX creates an active rate.

Work order labor and completion workflows use the stored rate to calculate overhead from labor hours. The overhead amount contributes to WIP and finished good cost transfer behavior.

Related docs

• Work Order Overhead Rate Overview
• How to Log Labor / WIP to FG
• Work Order Detail Overview
• General Ledger Overview