Costing Sheet Accounting Posting Profile

Finance and Operations/AX User Forum
1

Hi all,

I need your help in Costing Sheet Posting profile.

For example lets say I have indirect cost of Labour, Depreciation, etc.

I have done the following set up:

Accounts - WIP
Estimated Indirect cost absorption: Labour Cost applied (P&L account)
Est. Indirect absorption offset: Labour WIP

Accounts: Costing

Indirect absorption: Labour Cost Applied
Indirect absorption offset: Finished Goods Inventory

Labour Cost applied account is negative balance. When I book my actual payroll how I can offset this account?

Please help.

Thanks,

Samanth.

2

So your labour cost applied is an estimation of the cost of labour to produce the goods, whilst your payroll is what you actually paid. There is no issue here, it is an indication that your labour estimation or setup within AX is incorrect. You could periodically transfer the difference to COGS, but it is a moving amount in reality that needs to be monitored but can be explained.

3

I Agree with AdamRoue.

And, what you should be comparing in the ledger is as follows:

Wages - xxxx.xx

Benefits - yyy.yy

Tax - zzz.zz

Labour Cost Applied (or labor absorption) 0 <wwww.ww>

The net total of these four ledger accounts should indicate how much actual payroll you are absorbing into production. It will be a measure of production labor efficiency, appropriate labor rates, etc.

So, your setup in AX is correct.