We have created Make-To-Stock Job entry for 20 production quantity, we just issue to material to job and cost got booked.
We never use labor entry.
Job receipt to inventory
Please see the PTTH
In the Inventory/WIP reconciliation report - Labor unit cost and Burden unit cost got updated. It seems that the general ledger is accumulating the setup charge per piece, while the production detail report is not.
Are you standard cost?
Yes indeed.
That is how Standard Costing works. No matter what is actually done on the Job, parts will always enter inventory at the standard cost.
Apologies, John, I didn’t quite understand. Could you please explain in more detail? We simply issued the material to the job and moved it to stock. Why does the system update the Lbr Unit Cost and Bur Unit Cost in the GL? It seems that setup time and burden are being updated without booking the labor entries.
also… you need to have a costing lot size" set in the part/site table. the costing lot size is what tells the system what your “normal” lot size is. then it takes that setup time and divides it by the costing lot size to determine the total cost. if you don’t have a costing lot size, then the standard cost assumes a lot size of ONE.
Hello Tim,
Costing lot size mentioned as 20 in the part maintenance.
Using Standard Cost means that you set a standard cost at the revision level. You are telling the system that no matter what actually happens on a job, you always want the parts to be costed at that standard cost.
So, in your instance, even though an employee did not log into an operation, when you did your MFG-STK transaction, the standard cost was applied.
Any variance is captured to the variance accounts on your Product Group Control Code. It works the opposite way too. If an employee had logged 100 hours on the job, the part would still enter inventory at the same cost.
The setup time should remain constant, regardless of whether we produce 1 unit, or 100 units irrespective of standing costing. Isn’t it?
What is the standard cost of the part? Also, the labor is setup and production.
Yes, but not the setup cost in the standard. Kinetic will amortize the setup cost according to the Costing Lot Size.
It’s not we have costing lot size of 20Qty mentioned in the part/site.
Was that Costing Lot Size there when the Standard Cost Rollup was done?
Cost roll up was not done yet.
So the standard was entered manually?
I am not sure whether it entered manually or not.
Do I need to check this box?
Found in help:
If you select this check box, the Setup is marked as Complete and load for Setup Hours is relieved when production for an operation is marked as Complete.
Note: we are not booking the labor hours
Well, there are only two ways to enter the standard cost: roll it up or cost adjustment.
I’m not sure the business reasons here, but in Standard, if you don’t want labor costs, set the rates to zero. Like the others said, whatever is in the standard is what will be booked.
well, there is one other factor that could be in play… in the Engineering Workbench, you can specify “additional” setup. how this works is:
1: you specify the additional setup quantity… meaning that after every “X” pieces, you have to do additional setup time.
2. Addtionaly setup hours: if you specify the additional qty, you can also specify extra time here.
So, for example, you can specify that it takes you 1 hours to setup the machine, and then after every 30 pieces, you have to change out the tool, and that takes 0.2 hours to do.
