MFG Variable Labor Overheads

  • 18 March 2024
  • 4 replies
  • 62 views
E
Rank

The Variable Labor OH by Qty / Cost is calculated when an operation moves. The prerequisite is that the actual labor cost must be posted against the operation prior to the operation being moved. This makes sense conceptually. 

However, for clients that use clock entry and approve clock entry process, the actual labor does not get posted until the next day (or later). The move happens in real time as an operation is completed. 

The issue is that since the operation is already moved / completed, the variable labor overhead does not get calculated when the labor is posted. This is a timing issue, and causes the production order to not incorporate the variable labor overheads. 

I am curious how other members of the community may have solved for this? Thanks!

 

4 replies

jeremyd45
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Userlevel 5
Badge +1

when you create the labor transaction afterwards, it should still bring in the costs. you just want to make sure that you are not closing the production order until all of the time cards have been entered. There will be a time delay, but the only other way to do it would be to backflush labor and not worry about actuals (not ideal if you are trying to capture your variances accurately). 

Be the change you want to see
E
Rank

When I create the labor transactions afterwards, yes it does bring in those actual labor costs even for a completed operation. 

However, it won’t calculate the variable labor OH, because the operation is already moved / completed. The question here is about Variable Labor OH calculations and the timing of the actual labor transaction. 

jeremyd45
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Userlevel 5
Badge +1

I see, I misread your question. I don’t have a good answer on that one right now unfortunately. 

Be the change you want to see
angierowley75
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Userlevel 7
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We are evaluating making a change to how the existing product behaves as it relates to overhead calculations.  Please review, upvote and add your use case to this Community Idea:  

 

If I have helped you, please ~ *Like* my post. If I have provided an answer to your question, please mark it as *Best Answer* . Thank you!

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