We are setting up some Routings to do Scheduling.
We have an operation with…
Crew Size = 5
Resource = 1 (Sorting)
Labor = Burden
When the Cost Roll is done the Labor and Burdon Costs are multiplied by 5 as expected.
However, when multiple people clock-in to the operation only one of the people has the burden applied.
Are we doing something wrong?
If this is how it is supposed to work, why does it work that way?
Find the Job Costing Technical Reference Manual on EpicWeb for you version and look up ‘split burden’.
Maybe the question is more like…
Why are Cost Roll calculations not consistent with Actual Labor calculations?
Cost Roll multiplies the Burden Rate * Crew Size, but the actual Job Costing multiplies the Burden Rate * 1 of the people that entered Labor.
Example:
Cost Roll:
Burden = $10
Crew Size = 5
Burden = $50
Actual Labor Entry:
Five (5) people clock in, and work 1 hour,
Burden = Labor
Burden = $10. Only one person has the burden applied.
If we did Split Burden…
Burden = $10 (just split $2 for each person).
We still see the $50 - $10 = $40 differential.
It is probably because you have specified burden = labor.
I believe it is because you only have 1 resource. Resources generate the burden, not the people (unless the people are resources). If you add more resources to the resource group and the employees log into the separate resources, I think you will get what you are looking for.
I think you may be correct that if we add 4 more resources with $10 of Burden on each the math would come out. But I don’t understand why the Cost Roll doesn’t “see” the same thing. I would think it, also, shouldn’t calculate $50 until we add the 4 additional resources.