About Posted Job Transaction Calculations

Performing the Posting Process

The system sorts the unposted job transactions by job number, by operation within a job, and then by close-operation transactions within operations. Any transactions that close a job are processed last for that job.

If an error occurs, the system stops the job transaction posting and displays an error message. (The system does not post the transactions appearing after the transaction containing the error.)

When you return to the Unposted Job Transactions form, The system displays the transaction in which the error occurred. You can then correct the error and repost the transaction. The system resumes posting the remaining job transactions.

Error Messages

If physical inventory is in process for the default warehouse, the system displays a warning when you initiate the posting. You may continue or cancel the posting. If you elect to continue and the transaction involves moving items from or to a warehouse location where physical inventory is in process, The system stops the posting and displays an error message. This function allows you to post WIP-only related transactions.

Calculations for Various Transaction Types

• Setup transactions include the hours a resource worked in setting up a work center to perform an operation of a job.
• Run transactions apply charges to a job operation for labor hours and the quantity of goods completed, scrapped, and moved to the next operation. If the work center for the operation is labor scheduled rather than machine scheduled, the remaining scheduling time for the operation is reduced by the Total Hrs posted.
• Move transactions record the quantity of goods completed, scrapped, and moved at an operation without recording any labor or machine hours. Move transactions adjust these quantities on the Job Operations form.
• Indirect Labor transactions charge employee labor to an indirect labor code rather than to a job.
• Machine transactions apply machine overhead charges to a job operation for the hours a machine was run, along with the quantity of goods completed, scrapped, and moved to the next operation.
• Queue transactions allow you to log the amount of time a job has been in a queue waiting for resource availability.
• Direct Labor transactions charge the hours an employee has worked on a job operation. Direct Labor transactions add Labor Cost, Labor Overhead, and adjust the Run Rate in the Work Center. Direct Labor transactions do NOT reduce the Run Time remaining on an operation. The system adds Labor Cost and Labor Overhead to the Job WIP when you post Job Labor transactions.

Setup Transactions

To compute labor cost, the system does the following:

1. Multiplies the total hours by the pay rate.
2. Adds the labor cost to the total setup cost.
3. Adds the total hours to the total setup hours.
4. If you specified labor overhead rates on the Departments form, the system calculates the Variable Labor Overhead amount and adds it to the Total Variable Overhead, and then calculates the Fixed Labor Overhead amount and adds it to the total fixed overhead.
5. Computes a new Average Setup Rate and updates it on the Work Centers form, Costing tab.

Run Transactions

To compute labor cost, the system does the following:

1. Multiplies the total hours by the pay rate.
2. Adds the labor cost to the total run cost.Adds the total hours to the total run hours.
3. If you specified labor overhead rates on the Departments form, the system calculates the Variable Labor Overhead amount and adds it to the Total Variable Overhead, and then calculates the Fixed Labor Overhead amount and adds it to the total fixed overhead.
4. Computes a new Average Setup Rate and updates it on the Work Centers form, Costing tab.

The system also performs the additional posting for the move transaction for all run transactions.

Direct Transactions

Labor is added to a job, but the labor remaining on a job is not reduced.

Indirect Transactions

No posting is performed. Only the Payroll Generation function refers to this job transaction.

Queue Transactions

If the total hours is a positive number, the system increments the Tot Qty Queued field by one. If the total hours is a negative number, the system decrements the Tot Qty Queued field by one.

The system computes a new Avg Queue Hours and updates it on the Work Centers form, Scheduling tab.

Machine Transactions

For all run transactions, the system also performs an additional posting described below for the move transaction.

Variable and Fixed Machine Overhead

The system applies machine overhead to the job using the following formula:

MO = OMRH / ER * (FMOR + VMOR)

• MO  = Mach Ovhd
• OMRH = Oper Mach Run Hrs
• ER = Efficiency Rate
• FMOR = Fix Mach Ovhd Rate
• VMOR  =  Var Mach Ovhd Rate

On the Unposted Job Transactions form, Oper Mach Run Hrs = the Total Hours field when the transaction type is Machine.

You can define the Fix Mach Ovhd Rate and Var Mach Ovhd Rate. These rates default when adding new operations for this work center to a bill of material, but can be changed on the Job Operations form.

Move Transactions

The system adds the Completed, Scrapped, and Moved fields to the corresponding Completed, Scrapped, and Moved fields on the Job Operations form. The system adds the Scrapped field amount on this form to the Scrapped field on the Job Operations form.

If the Next Operation field contains an operation number, the system adds the Moved field to the Received field of the Job Operation form for that operation. The system then posts a WIP Move Material Transaction record.

If the Move to Loc field contains a stockroom location, the system adds the Moved field to the Completed field on the Job Operations form. Then, the system increases the quantity at the stockroom location by the moved quantity.

If you enter a new lot, the system creates a new Stockroom Location Lot record using the Moved qty as the On-hand qty.

Variable and Fixed Labor Overhead

You specify Variable and Fixed Labor Overhead amounts on the Departments form or on the job operations form. The system calculates the variable and fixed labor overhead by using the following formulas:

Variable Labor Overhead = Total Hrs * Var Lbr Ovhd Rate

Fixed Labor Overhead = Total Hrs * Fix Lbr Ovhd Rate

Related Topics

About Job WIP Costs

Costing Overview

About Standard Costing

Costing Setup

Job Orders