Labour cost in AX


I am pretty new to AX. I am more like an analyst. I might need help with the following:

  1. I would like to enter labour cost in AX and add it to the end product. How do we do it?

  2. I want to create automatic PO in ax when the inventory level goes below a certain quantity. How to set alerts for that ? How to create automatic PO ?


Moving to User forum. You have created it in the developer forum, please post in the related forum in future.

Quite large topics so lets start simple

With regards to 1.

  • Do they use the production modules?
  • What is the costing method?
  • Do they use routes to reflect the path of the produced item?
  • Are overheads added to the costing sheet?

With regards to 2.

  • Is Master Planning in use?
  • Is there any understanding of item coverage?

Basically these are two very large topics that could be answered a number of ways. Point 2 is just a piece of string that can keep being pulled, the short answer is - Associate the item with the appropriate coverage group and create the item coverage record for the inventory level at the dimension group controlled level required (i.e. site, warehouse) and then run planning to get it to create a planned purchase order based upon the item settings, planned usage and demand pattern" but all of that could be complete gibberish to you.

Hi Adam, Thanks for the response.

With regards to 1.

  • Do they use the production modules? Yes they do.
  • What is the costing method? As of now, ONLY ingredients and end products have costs. There is no cost for labour or overhead or any other costs.
  • Do they use routes to reflect the path of the produced item? Yes
  • Are overheads added to the costing sheet? Not as of now.

With regards to 2.

  • Is Master Planning in use? In a very basic level.
  • Is there any understanding of item coverage? We haven’t started implementing it yet but there is understanding of Item coverage. Yes.

Any step by step procedure on any of these would help. Thanks

Sorry about that.

Costing Method = Standard, FIFO, etc?

Standard. Sorry

So can you explain to me how your current costing of standard handles labour? If you start recording labour all you are doing is creating a greater variance to the standard, and your current standard cannot be a calculation.

There are choices in all of the above, I will, when I get time, document them for you in simple form.

What version of AX is this?

AX 2012.

Currently, no labour nor overhead costs are included. We just follow the cost of the standard cost entered for each product.

I feel you are missing my point :slight_smile:

The standard cost of the item, if indeed it is the standard cost, will include labour, so if you then add labour your variance will be because you post labour and labour is already included in the cost.

I presume you are not running the calculation and instead have a costing version with a fallback principle of the item itself?

You are right. I am not running the calculation. I know just for a fact that as of now we do not have labour costs included in AX. Keeping the calculations and variance aside, if we need to include labour cost, where in AX would we include exactly?

Okay so for labour.
You have routes.
The routes will have resources and they will reflect the time to process.
You will record that time in the route card journal (I will assume you are not using MES for this one, if you are tell me).
Go to the route and look at a the setup tab. On there there are cost categories. These come from the resource but you can change them on the route.
Go to the cost category there is a price option in the top toolbar, this opens the cost category price of the costing version.
You can go to the costing version from here, under the price option at the top you can select cost category, you then create an entry for your cost category with a price (so for run time category this would be an hourly price). Activate the price and ensure this cost category is set on the route.
Now when you report the labour on the route card it will pick up the price of the cost category and you can see this value in the production postings.

Try this first and see how you get on.

Hi Adam. I will try that. Thanks for that.

Another question, Can you please tell me how can we set up an employee to be clocked in and out when they start and finish work respectively. This is purely for knowing who is working and who is not. This is not for payroll.
Also, if they do clock in. How do we check who has clocked in for the day?

Your help is much appreciated.



This is all around the configuration in MES, you dont have to collect job work for routing, but ultimately that is what it is for. You need to think about control systems and physical process of doing this; there are stand alone systems that cater for this, but if AX meets your needs that is fine.

Look somewhere like this:…/time-and-attendance-registration-functionality-of-microsoft-dynamics-ax-2012