Does anyone here utilize the Mtl Burden % field found in Part Maintenance?
We use it for purchased parts, so we get closer our actual “landed cost” when we receive purchased parts (we don’t have the Landed Cost module).
Does this work for manufactured parts that have subcontract operations? I’m curious if we can get a mtl burden % to apply when we receive these subcontract operations in Receipt Entry. We often times have a 3rd party bill us for freight to-and-from our subcontract suppliers. We’d like that freight cost reflected in the cost of the manufactured part.
Have you already checked out the Job Costing Tech Ref Guide , section on “Material Burden”?
The application constantly updates material costs. It does this every time materials are purchased, subcontract work is performed, and job quantities are manufactured.
I’m not sure about K11, in E10 the JCTRG is also available as a PDF download:
Not sure if you have figured this out yet, but if you apply a material burden rate to the material(s) for the job of the subcontract part, the material burden will be reflected in the cost of the part. We actually have the landed cost module, and yet, this is the method we plan on using for subcontracted operations once we’re live because:
unfortunately, the posting rules consider AP Invoice 3rd Party Late Cost Lines against PO subcontract receipt lines to be “Subcontracting” and not “Material Burden,” and
if you do on a “Job Receipt to Inventory,” “Job Receipt to Job,” or even a “Customer Shipment” from a job of the parts returned from the subcontractor prior to entering the AP Invoice 3rd Party Late Cost Line against the Receipt Line for the subcontracting operation, you will be left with a variance on your job. The system has no “Received Not Invoiced” equivalent for “Purchasing Miscellaneous Charges” to 3rd parties (at least as far as I am aware).
