Want to be able to see it and add it to product cost……calculation for expected loss.
We know we can add a burden rate but don’t like that idea. We want to track Unavoidable Indirect Labor. SAP calls it PF&D (Personal Needs, Fatigue, and Unavoidable Delays). Want to track Unavoidable Indirect Labor and include in standard cost.
Has anyone created a MOD and/or Process for this business requirement?
sounds like something that could be incorporated into the Burden Rate on Labor. Otherwise, I have nothing for you.
Ralph, my old CFO mentor from years ago did a true-up every month to calculate a new burden rate so that all of our costs from the previous months was always / predictably accounted for in the following months. as certain costs slowly rise (non-bom items such as Supervision, electric bill, cost for Carbon Dioxide expense, Solder, etc) he would calculate the actual useage and adjust our burden rates accordingly to account for these changing values.
Anyway, we were an Actual Cost house… we always wanted EVERYTHING to show the Actual cost… but there are all those other things that dont get directly charged to jobs… the only way to account for those is to “Spread them like peanut butter” across all the jobs.