WIP IH Labor - At Actual Time

We are on a standard cost system and want to report all inventory balances at standard, but JDE values labor reported into WIP inventory by multiplying our dept standard labor rates by actual time reported. (On the IH doc type)

Is there an option to change this so the IH labor value is reported at standard - the dept standard rate * routing standard labor rate?

We have a few thousand work orders open at any one time and cannot realistically close them all to clear wip at the end of each month. The only workaround we have come up with so far is booking a manual journal entry each month based on a custom built report that values open work orders at standard, but this is not ideal or predictable.

Thanks
 

Devo

Well Known Member
WIP will capture your actual costs associated to your work order from labor and material issues. However, when you complete your work order, the item will go into inventory at your standard cost and anything left in WIP will become a Material or Labor Variance. From what is sounds like, you want your WIP to be based on standard costs. If that is the case, you should just backflush your labor at standards and not report actual time.
 
We do backflush some labor operations where there are thousands of pieces flowing through and actual time is not reported against the individual work orders. But a big portion of our plant is on an incentive piecework system and we have DSI integrated with JDE to capture the actual time on work orders for payroll purposes (payroll calculated outside JDE).

Could we still capture actual time in F31122 to calculate pay but have backflush set to post labor to the general ledger at standard?

Our thousands of orders can stay open for weeks or months at a time, leaving the labor portion of wip at actual. It seems oddly inconsistent to have just this one piece of our inventory not at standard when everything else is.

Thanks
 
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