Operation Labor to GL Account

[whit (Whit Wilson)]

I am trying to fix an issue where absorbed labor is not hitting the correct GL Account after running Inventory/WIP Reconciliation Report.

I know how much labor should be based on the standard cost after running cost workbench. All the labor comes from the various operations on the top level and subcomponents. We are not currently tracking true time through MES. We are just using the report quantity to complete the operations.

I have run the entire process from SO creation to Shipping to the Customer before running the WIP report. The first time I ran the the report we had some labor applied to the Labor GL Account but it was not all of it. Further more it was only for a single part and seemed to only be for the a single operation but included both the labor and the burden of that operation instead of just the labor. After running everything a second time nothing showed up under the Absorbed Labor GL Account. So my question is how is the labor on an operation applied to a GL Account?

I have search up various ideas and found that no GL codes are applied to the Employee or to the Department. Any help is greatly appreciated.

[Arul (Arul Shankar)]

WIP Account is picked from Product Group attached to Job or company default Inventory, COS and WIP GL Control code . Applied Labour/Burden account is picked from company default Inventory, COS and WIP GL Control code. Division and Department is overridden by Department attached to the Resource Group linked to the job operation. To create a labour transaction, LaborRate and LaborHours in LaborDtl must have non zero value.

[whit (Whit Wilson)]

Thanks for the reply but I don’t fully understand all that you said. I’m new to learning all of this so I am not as familiar with how to get around Epicor as most of you are.

@Arul

WIP Account is picked from Product Group attached to Job or company default Inventory, COS and WIP GL Control code

I assume this is the same Product Group that is assign to the part number? If so then that would be a higher level GL Account since we would want Labor split from the other accounts.

@Arul

Applied Labour/Burden account is picked from company default Inventory, COS and WIP GL Control code.

Where would I go to see this?

@Arul

Division and Department is overridden by Department attached to the Resource Group linked to the job operation.

None of our Departments have a GL Code associated with them. I don’t recall seeing anything about Division so not sure where to look for this. Assuming that it does not have a GL Code on it either then I’m at a loss for how the labor was applied to the first report I ran but not the second.

@Arul

To create a labour transaction, LaborRate and LaborHours in LaborDtl must have non zero value.

Where are these variables set?

Thank in advance!

[Arul (Arul Shankar)]

You can find GL Control under Finance Management -> General L:edger -> Setup -> GL Control Code and select Type as Inventory, COS and WIP.

For values, check the table LaborDtl which is populated when Time and Expense is entered. Field name are LaborRate and LaborHrs