Job Costing - Estimated Burden and Crew size

Epicor ERP 10
1

Hi,

I am investigating some variances between estimated job costs and actual job costs and just wanted to run something past you all.

There is a requirement to set up ‘Burden=Labor’ on the resource groups.

I’ve noticed that when Epicor estimates a job cost it takes into account crew size for the estimated hours, but not when estimating the burden.

For example a job has one operation assigned to resource 1, which has the checkbox ‘Burden=Labor’ set to true, with a crew size of two.

I assign the operation to a job and run the production detail report. The report provides estimates for:

  • Labor = Labor rate * (crew size * scheduled hours) = Labor rate * (2 *1)

  • Burden = Burden rate * scheduled hours = Burden rate * 1

When the users log onto the job they actually work for one hour each, thus with the setting of burden=labor, the actual burden = Burden rate * 2

Thus the estimates and actual are correct, but due to the estimate not considering crew size, there is a variance.

Bearing this in mind a crew size > 1 and ‘Burden=Labor’ set to true means MFG-VAR seem inevitable.

Does anyone see any flaws in my logic?

Cheers,

Andrew.

2

Sorry, I’m not sure from your explanation… and getting an answer to job costing questions can to be a little “involved”

I am just wondering if you have already looked at the “Job Costing Technical Reference Guide”?
I usually start there when I have any questions about labor/burden calculations.
If you don’t already have a copy, you can find a link to the PDF in the E10 embedded help
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1 Like
3

Hi Andrew,

The Burden = Labor only applies to data entered in the Data Collection module, so it doesn’t work for quoted/estimated. Here is what the Field Help says for that option:

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Beth

1 Like
4

:+1:

I do think it’s an inconsistency, but as long as it can be explained, I’m happy.

5

IKR?!? You would think it would apply to both estimating and actual but nope! HTH!!

1 Like
6

I’ve raised a call with Epicor - so i’ll let you know the response.

1 Like
7

Alas - it got pushed back by Epicor - I was told to raise it through Epicor ideas :cry:

8

Can you please suggest where to download this Job costing Technical reference Guide, as I am pretty new to Epicor , Thanks

9

PDF versions of several Tech Ref Guides are listed in the Epicor Help.
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10

Thank you, Got it
Appreciate your coming back ,
How well versed you are on the mfg side i.e I have a question on Rework Cost , it is straight going to product cost against the Rework operations which are mapped to correct GL Expense codes, but it is adding to product cost , Any lead on this front will help a lot Thanks and regards

11

Sorry, don’t know about rework off the top of my head.
One suggestion… I’m thinking you might want to start a new topic / description so that more readers will notice your question.

12

Thank you, NP, Sunil