Applied Labor vs COS Labor

Epicor ERP 10
1

I need some help wrapping my head around COS Labour, Applied Labour, Direct Wages, and Indirect Labour in Epicor. :exploding_head: While I have a basic understanding, I want to ensure I can communicate this effectively to executives and stakeholders in a simple and clear manner, especially now that I’m helping re-design some reports for them.

If anyone could shed some light on how these accounts flow together, that’d be highly appreciated! Especially the concept of Applied Labour, as I know that has caused some confusion in the past. Trying to get the big picture here to explain it smoothly.

Big thanks in advance!

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Hello Marianne,

There is a lot of good information in the Technical Reference Guides on EpicWeb.

All of the Hierarchy Guides are indispensable when it comes to knowing which G/L Control Codes are used in various situations. But the one you’ll want to check out is the Job Costing Technical Reference Guide. It does a nice job explaining everything related to labor reporting.

For me, the concept of absorption accounts was strange at first, until we started to talk about labor reporting and payroll. How can I put labor into WIP AND pay employees? :thinking: Once I learned about how absorption accounts (in the income statement section) work as a dumping ground to balance the two, it made more sense to me. I think this article explains it well.

Cheers.

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