I am wondering if anyone has any suggestions on how to approach the labor costs when running mutiple production orders in parallel.
In the shop an employee start a machine in a work center. They then have to monitor that machine until the job is complete.
An employee is capable of monitoring several machines in the work center at once ( will be using "Multiple Production Clock Entry” to support this part).
As it is the direct labor rate is read from the work center. So if an employee clocks multiple jobs at the same time the full labor rate is assumed for each production order… For example if the work center has a labor rate of $30/hr and an employee is running 3 jobs at once this will count as a grand total of $90/Hr.
In reality we want the labor rate to be variable so that the rate is considered in context of parallel jobs… If the employee is running 3 jobs in parallel then the rate should become $10/hr since the work center has 3 jobs active at the same time.
Has anyone else solved this, tracking accurate labor rates when running jobs in parallel and not overstating the direct labor costs overall ?
Variable Labor Rate - Parallel Processes
Best answer by andrestamour43
Acumatica has the ability to automatically prorate time based on the number of simultaneous clock ins automatically through the Multiple Production Clock Entry (AM316000) form.
If an employee works on 3 jobs at the same time for an hour, then each job gets allocated 20 minutes instead of each job getting the full hour. So if your work center costs $100/hour, each job in this scenario would have $33.33 of cost added to it.
For more information see:
https://help.acumatica.com/(W(1))/Help?ScreenId=ShowWiki&pageid=2843962c-8a6e-40b2-8721-c293220cb6dd
I’m new to Acumatica, but typically ERP’s pro-rate time by the number of open labor transactions and not rate/hr. Start and Stop may reflect to total span, but there is an ‘hours worked’ field that is calculated and adjusts for proration. It ensures the total cost (rate x pro-rated time) is accurately applied to an operation.
Since the labor entries are not contextually aware that the work center had multiple jobs running at the same time the same (rate) * (time) calculation is applied for each entry and the rate does not vary based on the number of active jobs.
It also seems that is is not possible to manually override the labor rate when approving the clock entries (or directly adding labor)
Hello
I guess computing labor cost by shift in the parallel jobs context is natively not available and it requires customization.
Hope this helps!
Acumatica has the ability to automatically prorate time based on the number of simultaneous clock ins automatically through the Multiple Production Clock Entry (AM316000) form.
If an employee works on 3 jobs at the same time for an hour, then each job gets allocated 20 minutes instead of each job getting the full hour. So if your work center costs $100/hour, each job in this scenario would have $33.33 of cost added to it.
For more information see:
https://help.acumatica.com/(W(1))/Help?ScreenId=ShowWiki&pageid=2843962c-8a6e-40b2-8721-c293220cb6dd
If the Acumatica’s Multiple production clock entry doesn’t work for you, I have an ISV solution we’ve started working with. I believe it allows actual time against a parallel production orders so you don’t have to distribute the time evenly - you can post actual times.
Link: Trabea Time Tracker
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