Hi, we have a simple route with two operations - 1 to account for internal labor and another for sub-contracting. Question is how to cost account for the labor both direct and outsourced?
for operation 1, we defined a cost category with cost group of “direct manufacturing” with ledger accounts for WIP/costing.
Human Resource w/resource group is assigned to the route. We specified ledger accounts for both resource and resource group.
Question #1 To cost account for this labor, do we need to explicitly specify costing resource? or Will the above set up allow us to capture the costs associated with the run time and account for it?
for operation #2), we set up a service item ‘sub-contractor service’ that is stocked in the model group. We set up a cost group ‘direct outsourcing’ and assigned to this item. Vendor account is also assigned in the BoM line. Set up a vendor resource group and assigned to this route operation. ledger account is defined for the vendor group as well.
But I was looking for this cost group to be associated with the route operation but the cost categories with a cost group of 'Direct Manufacturing" type is allowed. This system behavior I think is correct.
So do I need to define a sub-contracting price in the Cost Sheet and associate the cost group for “direct outsourcing” that we used in the service item? I think I am missing something. Could someone help me in the right direction?
Many thanks in advance