Costing Question

Gil,
Thanks for taking the time to respond! I appreciate your help and will pass
your comments along to our accounting manager.
\Steve


-----Original Message-----
From: Gil Amilbangsa [mailto:gil.amilbangsa@...]
Sent: Sunday, September 15, 2002 5:10 PM
To: vantage@yahoogroups.com
Subject: [Vantage] RE: Costing Question


Steve,
1. Estimated cost for a quote pulls in the labor cost from the Operation
Master Quoting field.
2. Estimated cost for a job = Operation Master Costing x Estimated
Hours{Set-Up + Production}.
3. Actual Cost when labor is reported against the job is = Actual Labor
Hours x Employee Labor Rate from Employee Master.

When you run a production detail report, there are rows after the Operations
tables that show Estimate and Actual Costs. Columns include Labor Hours
(Set-Up & Prod) and Costs/Labor. Estimated Cost/Labor is calculated from
(2). Actual Cost/Labor is (3).

Given Actual Hours = Estimated Hours, if Reported Employee Rate <> Standard
Labor Rate for the Operation, then you will see a variance. If you leave the
Labor Rate in the Employee Master blank (or zero), then the cost posted when
this particular employee reports hours will be zero. Which is the modern
definition of slavery.

The Employee Labor Rate in the Employee Master is not/never used as the
default in Job Entry and by extension, default calculation of estimated Job
Costs. However, if you know that a specific highly paid employee would have
to do a particular task, say only the CFO can cook a very special product,
you can change the labor rate in the Job/Operation itself. Then the
estimated Job Cost calculation will use this new figure. You can do this
change during Quote Entry, too.

My A$0.02 worth.

Gil Amilbangsa
Australian Healthcare Equipment
gil.amilbangsa@...

________________________________________________________________________
________________________________________________________________________

Message: 1
Date: Fri, 13 Sep 2002 13:34:03 -0500
From: "Steve Sanders" <ssanders@...>
Subject: RE: Costing Question

Edward,
Thanks for your response. I got the part about the estimated job cost; I'm
really curious how Vantage is supposed to act and since the help file isn't
of much value I was hoping that someone could shed some light on the
subject.

Is there anyone else that can shed light on this subject????? PLEASE!!!!

\Steve
-----Original Message-----
From: Edward F. Fox, Jr. [mailto:efox@...]
Sent: Friday, September 13, 2002 10:53 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Costing Question


The concept is that the estimated job cost is calculated based on the
costing rate for the operation because the actual employee is not known at
that time. What we do is put our standard hourly rate (not the actual
wage
for the employee) into the "shop employee" in JM/MFM/Shop Employee. This
way when the employee clocks in on the job it uses our standard rate.

I have not tested it without rates in the shop employee file so I can't
answer you more specifically.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone: 401-596-0162 x110
Fax: 401-596-1050
www.maxsonautomatic.com


-----Original Message-----
From: Steve Sanders [mailto:ssanders@...]
Sent: Friday, September 13, 2002 11:33 AM
To: Vantage List (E-mail)
Subject: [Vantage] Costing Question


After running Vantage for 4 years, we are finally getting serious about
using Vantage to cost jobs (what a concept, huh?). Consequently, the
accounting manager has been bugging me with a bunch of questions, one of
which has me stumped.

If you go to Operation Master Maintenance, there are fields for Costing
and
Quoting labor rates. I understand that quoting rates are used to
calculate
estimates of the cost for quoting purposes, but I'm not so clear about the
Costing fields. The help screen says, "This appears as the default rate
when this operation is entered in Job Entry. Estimated labor cost will be
calculated by multiplying this rate times the estimate production hours,
plus the estimated setup cost." Huh? Where is this used? Is it used to
cost the job or not? If so, what about the labor rate in the Employee
record.

What I hope the answer is, is that if the Employee labor rate is blank
then
Vantage will use the rate entered in the Operation master.

Can somebody please set me straight on this?

Thanks a bunch!
\Steve

======================
Steve Sanders
Delta Centrifugal Corp





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[Non-text portions of this message have been removed]
After running Vantage for 4 years, we are finally getting serious about
using Vantage to cost jobs (what a concept, huh?). Consequently, the
accounting manager has been bugging me with a bunch of questions, one of
which has me stumped.

If you go to Operation Master Maintenance, there are fields for Costing and
Quoting labor rates. I understand that quoting rates are used to calculate
estimates of the cost for quoting purposes, but I'm not so clear about the
Costing fields. The help screen says, "This appears as the default rate
when this operation is entered in Job Entry. Estimated labor cost will be
calculated by multiplying this rate times the estimate production hours,
plus the estimated setup cost." Huh? Where is this used? Is it used to
cost the job or not? If so, what about the labor rate in the Employee
record.

What I hope the answer is, is that if the Employee labor rate is blank then
Vantage will use the rate entered in the Operation master.

Can somebody please set me straight on this?

Thanks a bunch!
\Steve

======================
Steve Sanders
Delta Centrifugal Corp



[Non-text portions of this message have been removed]
The concept is that the estimated job cost is calculated based on the
costing rate for the operation because the actual employee is not known at
that time. What we do is put our standard hourly rate (not the actual wage
for the employee) into the "shop employee" in JM/MFM/Shop Employee. This
way when the employee clocks in on the job it uses our standard rate.

I have not tested it without rates in the shop employee file so I can't
answer you more specifically.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone: 401-596-0162 x110
Fax: 401-596-1050
www.maxsonautomatic.com


-----Original Message-----
From: Steve Sanders [mailto:ssanders@...]
Sent: Friday, September 13, 2002 11:33 AM
To: Vantage List (E-mail)
Subject: [Vantage] Costing Question


After running Vantage for 4 years, we are finally getting serious about
using Vantage to cost jobs (what a concept, huh?). Consequently, the
accounting manager has been bugging me with a bunch of questions, one of
which has me stumped.

If you go to Operation Master Maintenance, there are fields for Costing and
Quoting labor rates. I understand that quoting rates are used to calculate
estimates of the cost for quoting purposes, but I'm not so clear about the
Costing fields. The help screen says, "This appears as the default rate
when this operation is entered in Job Entry. Estimated labor cost will be
calculated by multiplying this rate times the estimate production hours,
plus the estimated setup cost." Huh? Where is this used? Is it used to
cost the job or not? If so, what about the labor rate in the Employee
record.

What I hope the answer is, is that if the Employee labor rate is blank then
Vantage will use the rate entered in the Operation master.

Can somebody please set me straight on this?

Thanks a bunch!
\Steve

======================
Steve Sanders
Delta Centrifugal Corp



[Non-text portions of this message have been removed]



Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
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(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
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http://groups.yahoo.com/group/vantage/messages
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The way we want things to work, is to have the shop employee rate (set to be
one of several standard level rates, not employee actual rates) be what goes
to the job, not the operation rate. That way if a more expensive level of
employee does the work than the job operation was set up for, we get the
higher rate to the job. If I am right in my understanding, that means the
operation costing rate has to be blank, otherwise the operation rate is used
over the employee rate.
Your requirements may be for an operation standard rate to be used to cost
the job, rather than the employee rate. In that case, you would put a rate
in the costing section for each operation.
Nora Story
Spectra Technologies, Inc.

> -----Original Message-----
> From: Steve Sanders [mailto:ssanders@...]
> Sent: Friday, September 13, 2002 10:33 AM
> To: Vantage List (E-mail)
> Subject: [Vantage] Costing Question
Edward,
Thanks for your response. I got the part about the estimated job cost; I'm
really curious how Vantage is supposed to act and since the help file isn't
of much value I was hoping that someone could shed some light on the
subject.

Is there anyone else that can shed light on this subject????? PLEASE!!!!

\Steve
-----Original Message-----
From: Edward F. Fox, Jr. [mailto:efox@...]
Sent: Friday, September 13, 2002 10:53 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Costing Question


The concept is that the estimated job cost is calculated based on the
costing rate for the operation because the actual employee is not known at
that time. What we do is put our standard hourly rate (not the actual
wage
for the employee) into the "shop employee" in JM/MFM/Shop Employee. This
way when the employee clocks in on the job it uses our standard rate.

I have not tested it without rates in the shop employee file so I can't
answer you more specifically.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone: 401-596-0162 x110
Fax: 401-596-1050
www.maxsonautomatic.com


-----Original Message-----
From: Steve Sanders [mailto:ssanders@...]
Sent: Friday, September 13, 2002 11:33 AM
To: Vantage List (E-mail)
Subject: [Vantage] Costing Question


After running Vantage for 4 years, we are finally getting serious about
using Vantage to cost jobs (what a concept, huh?). Consequently, the
accounting manager has been bugging me with a bunch of questions, one of
which has me stumped.

If you go to Operation Master Maintenance, there are fields for Costing
and
Quoting labor rates. I understand that quoting rates are used to
calculate
estimates of the cost for quoting purposes, but I'm not so clear about the
Costing fields. The help screen says, "This appears as the default rate
when this operation is entered in Job Entry. Estimated labor cost will be
calculated by multiplying this rate times the estimate production hours,
plus the estimated setup cost." Huh? Where is this used? Is it used to
cost the job or not? If so, what about the labor rate in the Employee
record.

What I hope the answer is, is that if the Employee labor rate is blank
then
Vantage will use the rate entered in the Operation master.

Can somebody please set me straight on this?

Thanks a bunch!
\Steve

======================
Steve Sanders
Delta Centrifugal Corp



[Non-text portions of this message have been removed]



Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must
have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/



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ADVERTISEMENT




Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must
have already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links

Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.



[Non-text portions of this message have been removed]
1 Like
Steve,
1. Estimated cost for a quote pulls in the labor cost from the Operation Master Quoting field.
2. Estimated cost for a job = Operation Master Costing x Estimated Hours{Set-Up + Production}.
3. Actual Cost when labor is reported against the job is = Actual Labor Hours x Employee Labor Rate from Employee Master.

When you run a production detail report, there are rows after the Operations tables that show Estimate and Actual Costs. Columns include Labor Hours (Set-Up & Prod) and Costs/Labor. Estimated Cost/Labor is calculated from (2). Actual Cost/Labor is (3).

Given Actual Hours = Estimated Hours, if Reported Employee Rate <> Standard Labor Rate for the Operation, then you will see a variance. If you leave the Labor Rate in the Employee Master blank (or zero), then the cost posted when this particular employee reports hours will be zero. Which is the modern definition of slavery.

The Employee Labor Rate in the Employee Master is not/never used as the default in Job Entry and by extension, default calculation of estimated Job Costs. However, if you know that a specific highly paid employee would have to do a particular task, say only the CFO can cook a very special product, you can change the labor rate in the Job/Operation itself. Then the estimated Job Cost calculation will use this new figure. You can do this change during Quote Entry, too.

My A$0.02 worth.

Gil Amilbangsa
Australian Healthcare Equipment
gil.amilbangsa@...

________________________________________________________________________
________________________________________________________________________

Message: 1
Date: Fri, 13 Sep 2002 13:34:03 -0500
From: "Steve Sanders" <ssanders@...>
Subject: RE: Costing Question

Edward,
Thanks for your response. I got the part about the estimated job cost; I'm
really curious how Vantage is supposed to act and since the help file isn't
of much value I was hoping that someone could shed some light on the
subject.

Is there anyone else that can shed light on this subject????? PLEASE!!!!

\Steve
-----Original Message-----
From: Edward F. Fox, Jr. [mailto:efox@...]
Sent: Friday, September 13, 2002 10:53 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Costing Question


The concept is that the estimated job cost is calculated based on the
costing rate for the operation because the actual employee is not known at
that time. What we do is put our standard hourly rate (not the actual
wage
for the employee) into the "shop employee" in JM/MFM/Shop Employee. This
way when the employee clocks in on the job it uses our standard rate.

I have not tested it without rates in the shop employee file so I can't
answer you more specifically.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone: 401-596-0162 x110
Fax: 401-596-1050
www.maxsonautomatic.com


-----Original Message-----
From: Steve Sanders [mailto:ssanders@...]
Sent: Friday, September 13, 2002 11:33 AM
To: Vantage List (E-mail)
Subject: [Vantage] Costing Question


After running Vantage for 4 years, we are finally getting serious about
using Vantage to cost jobs (what a concept, huh?). Consequently, the
accounting manager has been bugging me with a bunch of questions, one of
which has me stumped.

If you go to Operation Master Maintenance, there are fields for Costing
and
Quoting labor rates. I understand that quoting rates are used to
calculate
estimates of the cost for quoting purposes, but I'm not so clear about the
Costing fields. The help screen says, "This appears as the default rate
when this operation is entered in Job Entry. Estimated labor cost will be
calculated by multiplying this rate times the estimate production hours,
plus the estimated setup cost." Huh? Where is this used? Is it used to
cost the job or not? If so, what about the labor rate in the Employee
record.

What I hope the answer is, is that if the Employee labor rate is blank
then
Vantage will use the rate entered in the Operation master.

Can somebody please set me straight on this?

Thanks a bunch!
\Steve

======================
Steve Sanders
Delta Centrifugal Corp
1 Like