Hello,
We’re evaluating our end of month financials and noticed that labor hours booked without pieces/yield the burden isn’t booked. We’re using variable by labor hours overheard type. We’ve looked over the existing documentation and are still unsure what overhead would be appropriate for booking the burdened rate with labor hours and no pieces.
+6Prior to 25R2, overhead was only calculated when a Qty was reported. 25R2 introduced the new release process that calculates overhead based on the labor hours and/or material issues. This feature needs to be enabled on the Production Preferences.
Prior to 25R2, overhead was only calculated when a Qty was reported. 25R2 introduced the new release process that calculates overhead based on the labor hours and/or material issues. This feature needs to be enabled on the Production Preferences.
Thanks for the response. If I’m understanding this correctly, enabling the new releases process will calculate overhead for labor only and not require quantity produced?
+6Correct. Once you enable the feature in Production Preferences (once enabled, it cannot be disabled), create new numbering sequence for Production Transactions in Inventory Preferences.
When you view a Production Transaction, the Costs tab shows the overhead from material and/or labor.
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