Can someone please confirm where we enter our planned labour costs on a BOM?
Our original BOMs were set up by a consultant and it was never explained to us where to enter this information. From my searching I think it is ‘run time’ on the work centres on a BOM. Is this correct?
If it is, we assume a production order adds all work centre run times together to get the planned labour time on a production order?
Best answer by angierowley75
The setup & run time on the production order operation are used to calculate the time.
Depending on how you have your Production Preference set to use Standard or Employee labor rate - controls how the cost is calculated.
+3The setup & run time on the production order operation are used to calculate the time.
Depending on how you have your Production Preference set to use Standard or Employee labor rate - controls how the cost is calculated.
+2Also, make sure that the shift Differential Type, if set to rate, is at least 1. A client of ours ran into this and although they had a default work center rates, when the cost calculation was done, labor was zero because the Shift Differential was zero.
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