Solved

Using Indirect Costs in Production Correctly

  • 13 March 2024
  • 2 replies
  • 36 views
S
Rank
Userlevel 2

Hello, I have a question regarding the production module.

It concerns the work process feedback – 'Actual Time' and the use of indirect costs there. Where and how does the system determine the price for the indirect costs?

We have already entered an hourly rate for the employee, but to no effect.

Use case example: A worker cleans the hall and machines for 3 hours on Friday. This time should be reported as indirect costs.

As a result, the expense account is relieved, and the overhead cost account is charged. Where and how do I now need to adjust what these 3 hours have cost?

icon

Best answer by andrestamour43 13 March 2024, 13:57

View original

2 replies

A
Rank
Userlevel 5
Badge +1

@SchellerFer, 

The question as I understand it is how is how does the labor rate get populated for indirect labor on the Labor (AM301000) form for an employee? 

As depicted below I have a labor cost of $30 per hour for employee EP000000018

Labor Rate $30/HR for EP00000018

The Labor Rate is established on Labor Rates (PM209900). The rate used in the manufacturing module is the Cost Rate. The manufacturing module only uses the row that has a blank Labor Item field. If no rows for the employee have a blank labor item field then the cost rate used will be $0.00

Labor Item must be blank for Manufacturing Module to use the cost rate.

Sincerely, 

Andre St. Amour
S
Rank
Userlevel 2

Thats it. Thank you!

Reply


Terms & ConditionsCookie settings
About Acumatica ERP system
Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
© 2008 — 2024  Acumatica, Inc. All rights reserved