Hello all,
Is anyone aware of any sort of document or cheat sheet that describes the actual processes that takes place during a receipt transaction for an average costed part?
Specifically, a receipt uses the the average cost elements for the part in order to generate its own costs. Then updates the average cost elements to include its current receipt. For a job producing 100 widgets, received individually (or for lot tracked receipts) this occurs with each of those 100 receipts.
I’m curious about the math that’s performed as I’d like to be able to model this activity in an Excel spreadsheet.
For example, the material cost, for a receipt, might be expressed as follows:
Step 1. Qty 10 multiplied by the average Mtl Cost = New Mtl Cost for this receipt.
Step 2. Calculate the new avg (incl. this addit’l 10 units), and write to PartTran and update PartCost.
That’s my educated guess as far as Mtl is concerned, but how is labor calculated?
There’s a requirement that sufficient labor HOURS and COMPLETED qty (specified in Time & Expense) must be available to this receipt, otherwise, there will be zero labor cost.
So Labor isn’t simply using the qty multiplied by the average labor cost. This calc requires labor be present on the job.
Does anyone know what comprises the components and mechanics of this calculation?
Thanks!