Material Labor Unit Cost

Yahoo Archive
1
And you touch on what I suspected....my inventory from stock!

If I had my subassemblies backflushed with their appropriate labor and
burden rates in tact, everything would have hit applied labor correctly
(as appropriate).

But to relieve my inventory cost and issue my subassemblies as
materials, that part of the subassembly hits the material labor unit
cost, understating my applied material bucket....pain in the #$%.

Thanks, that helped! At least I know what direction to prove this to my
boss!

M



M. Manasa Reddy
manasa@...
P: 630-806-2000
F: 630-806-2001


________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of saab_barracuda
Sent: Monday, April 06, 2009 11:13 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Material Labor Unit Cost



Hi Manasa,
That field is part of the Material Unit Cost breakdown.

Material Unit Cost = Material Material Unit Cost + Material Labor Unit
Cost + Material Burden Unit Cost + Material Subcontract Unit Cost

You would only have Material Labor Unit Cost if you had a subassembly
issued to the job that was NOT marked "Pull As Assembly" in the BOM and
therefore issued as material. I.e. subassemblies that were manufactured
on a previous job and put in stock inventory before being issued to the
current job. These material labor costs flow directly to the Material
COS bucket which I have an issue with but nevertheless, not the problem
as you've described it here.

Back to your original question, you can go to the Inventory/WIP
Reconciliation report filtering for that COS account and check the
"Include Offsetting Accounts" checkbox to see where the labor costs are
coming from and drill down from there. Follow the money. Perhaps another
Applied Labor account from department other than you were expecting?
Hard to say though so best to check the cost flows for the period.

Good luck,

Chris

--- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
"Manasa Reddy" <manasa@...> wrote:
>
> For you accounting gurus and anyone else who can shed some light into
> this... I have an issue with Chart tracker.
>
> For whatever reason my Applied Labor bucket is severely under what the
> total of my COS labor accounts on my product groups total. By about
> 30%. I probably wouldn't freak out in most manufacturing facilities,
> but in our's where we backflush all materials and all labor, this is a
> MAJOR problem.
>
> After some digging I noticed (in Chart tracker) there is this lovely
> field called Material Labor Unit Cost. What in god's name is this
filed
> used for? Exactly how is this field triggered? When does the system
> use it and when doesn't it use it?
>
> Hope this makes sense!
>
> TIA, Manasa
>
>
>
> M. Manasa Reddy
> Information Technology Manager
> Welding Company of America
> manasa@...
> P: 630-806-2000
> F: 630-806-2001
>
>
>
> [Non-text portions of this message have been removed]
>






[Non-text portions of this message have been removed]
2
For you accounting gurus and anyone else who can shed some light into
this... I have an issue with Chart tracker.

For whatever reason my Applied Labor bucket is severely under what the
total of my COS labor accounts on my product groups total. By about
30%. I probably wouldn't freak out in most manufacturing facilities,
but in our's where we backflush all materials and all labor, this is a
MAJOR problem.

After some digging I noticed (in Chart tracker) there is this lovely
field called Material Labor Unit Cost. What in god's name is this filed
used for? Exactly how is this field triggered? When does the system
use it and when doesn't it use it?

Hope this makes sense!

TIA, Manasa



M. Manasa Reddy
Information Technology Manager
Welding Company of America
manasa@...
P: 630-806-2000
F: 630-806-2001



[Non-text portions of this message have been removed]
3
--- In vantage@yahoogroups.com, "Manasa Reddy" <manasa@...> wrote:
>
> For you accounting gurus and anyone else who can shed some light into
> this... I have an issue with Chart tracker.
>
> For whatever reason my Applied Labor bucket is severely under what the
> total of my COS labor accounts on my product groups total.

Not knowing your particular Operation flow/Accounting flow, in most manufacturing setups Applied labor flows to WIP Labor, then to Inventory, then to COS when sold.
4
Hi Manasa,
That field is part of the Material Unit Cost breakdown.

Material Unit Cost = Material Material Unit Cost + Material Labor Unit Cost + Material Burden Unit Cost + Material Subcontract Unit Cost

You would only have Material Labor Unit Cost if you had a subassembly issued to the job that was NOT marked "Pull As Assembly" in the BOM and therefore issued as material. I.e. subassemblies that were manufactured on a previous job and put in stock inventory before being issued to the current job. These material labor costs flow directly to the Material COS bucket which I have an issue with but nevertheless, not the problem as you've described it here.

Back to your original question, you can go to the Inventory/WIP Reconciliation report filtering for that COS account and check the
"Include Offsetting Accounts" checkbox to see where the labor costs are coming from and drill down from there. Follow the money. Perhaps another Applied Labor account from department other than you were expecting? Hard to say though so best to check the cost flows for the period.

Good luck,

Chris

--- In vantage@yahoogroups.com, "Manasa Reddy" <manasa@...> wrote:
>
> For you accounting gurus and anyone else who can shed some light into
> this... I have an issue with Chart tracker.
>
> For whatever reason my Applied Labor bucket is severely under what the
> total of my COS labor accounts on my product groups total. By about
> 30%. I probably wouldn't freak out in most manufacturing facilities,
> but in our's where we backflush all materials and all labor, this is a
> MAJOR problem.
>
> After some digging I noticed (in Chart tracker) there is this lovely
> field called Material Labor Unit Cost. What in god's name is this filed
> used for? Exactly how is this field triggered? When does the system
> use it and when doesn't it use it?
>
> Hope this makes sense!
>
> TIA, Manasa
>
>
>
> M. Manasa Reddy
> Information Technology Manager
> Welding Company of America
> manasa@...
> P: 630-806-2000
> F: 630-806-2001
>
>
>
> [Non-text portions of this message have been removed]
>