We have a project with multiple tasks from initiation to signoff. For this project, we’re creating Production Orders for multiple Finished Goods.
-
Labor Transactions: When labor transactions are created for a production order, they generate a GL transaction that posts to the WIP (Work-in-Progress) account. Upon closing the production, the labor costs move to the Finished Goods (FG) inventory.
-
Shipping/Issuing Finished Goods: When the finished goods are shipped or issued, the costs move to COGS (Cost of Goods Sold) and update the Material account group in the project.
Is this flow and my understanding correct?
The main challenge I’m facing is tracking the production labor costs that have been reported back to the project, particularly when there is a budget allocated for labor costs.
-
Labor Budgeting: How can I ensure that the actual production labor costs are properly tracked against the budget that was allocated for labor within the project?
-
Linking Labor to the Project: How do I make sure that the labor costs, reported through production orders, are reflected in the project’s budget tracking?
