Bishal is correct - it depends on what you mean by "overheads". If you are referring to specific expenses for the production, like labor hours or packaging materials, you can certainly add those to the BOM as non-inventory items. Be sure the amount is correct on the Production Order before you enter the Receipt from Production, since that is when the value of these items will be added to the cost of the finished items. But if you are speaking of more general overhead, like rent or utilities, it is better to just enter those through the normal A/P Invoice or Journal Entry process. Be sure the accounts are in the Cost of Goods Sold section or your Chart of Accounts. These expenses will not be directly apportioned to the individual finished items, but they will be subtracted from the gross profit. If you really need them to be reflected in the item costs, then a revaluation would be necessary - but you still have to deal with the items that have already been sold and shipped out. You end up debiting an adjustment account - which is back to the COGS again.
Marcia
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