Hi, This is with regard to capturing the cost of actual Labour Hour/machine Hour utilization. As I know, the Machine center has the Direct Cost, Indirect Cost and Overhead Cost field which need to be filled up at the time of creation of master. The above cost are picked up while output is posted. However, in most of the cases, these values do not represent the actual costs. The actual costs can be calculated at the end of certain period-at the end of a month or a year. However, by the output would have been posted and the Production order status would have been changed to ‘Finished’. In such an events, how to plough back the actual costs or the difference in the posted costs and actual costs, to the Production Order.? In case of Material/Components, as I know, if you revalue the Item ledger entry, the difference in cost gets posted to the Production order, even if it is in finished status. Trust I am clear and there is no ambiguity. I repeat my question, how to post additional labor or Machine cost or difference in costs, after a Prod Order is finished? Thanks in advance. Vijay
Hi What you really want to do is reflect the actual output time when reporting output, this way it solves all of your problems. Are you saying you do not know the time you have just spent producing something so report standard output? To capture actual costs people will report teh actual output, it is as simple as that. If you do not know this until a much later date and the production order is finished you would need some modifications to accomplish this if it is possible.
Hi Vijay, There is no direct way to post the actual costs after the production order is finished. 1) If the Item is on invenotry, you can use the revaluation.But this does not give you the break up of Labour and machine costs. 2) If the finished item is already sold or consumed than you have to make adjustments to the COGS, Direct cost accounts as applicable. Here also, since you are not able to create G/L entries along with value entries, Invariably Dimensions have to be used which could either be your production order number or any other which monitors your manufaturing costs. 3) Even if you are creating G/L entries to adjust costs, You certainly will have to provide clients with additional customizations which divides the costs per machine center/work center and allocates properly to the invenotry items in the sequence of the date of output and usage. You will probably realise that above jobs are complicated ones and you really need to put in good amount of efforts to provide the same to your client. Regards, DD