How the heck does a Purchased Part get Labor Applied to it?

We are Average Costed here and we have some Purchased Parts that have been transferred from plant to stock, and issued to Jobs and they somehow got Labor and Burden applied to them. They were Materials that are Purchased. I can see in the Transaction History when it happened, but the costs just appear after a Transfer from one Plant to the other Plant, and then the costs go to the Job and keep increasing the Average Labor and Burden costs. There are no Material Labor or Burden on these, just regular Labor and Burden.

I have reviewed the Inventory Transaction Hierarchy but don’t see where they could get Labor and Burden from.

Any help appreciated.
George Hicks

Mtl burden? The cost of handling a material, resource burden?

The part is a Purchased part but has Labor and Burden on it, not MtlLabor or MtlBurden.
I am wondering if it may have been configured as “Pull as Assembly” at one time, which I have seen, and then they completed the Job and it got Labor and Burden on it that way?
A mystery…

George, just for HaHa’s. What is the costing method for that part? Multiple plants?

Charlie Smith

CRS Consulting Services


Hello Charlie! Long time my friend!

We are Average Costed, and yes Multiple Plants with Transfer Orders to move parts back and forth. All Jobs are Make to Stock in MX Plant, never to Order, and all Orders are Pull from Stock in US Plant.