Actual Cost

Hi Lists,
Here is the issues the client asked.
We have the work orders for 7 operations (op10, op20...etc). However, client wants to calculate the costs by each operation which include costs on materials, hours and expenses.
I do not have the workable way or workaround to do this but neither like to split one WO to 7 WOs with 7 items.
Anyone has the advices for this. Thanks !
Regards,
John Hsiao

Each of your operations has a work center asociated with it - right? The BOM describes when the materials are used - right? If you use Hours & Quantities Entry to update labor by operation......

Rob

John & Rob,

Good question. Your client won't be the first or last to ask that one. I really wish JDE had an engine for extracting these costs for analysis. Regardless of whether you use Standard or Actual Costing the answer is the same: NO - you cannot do this. I am not sure what Rob is driving at in his answer... Yes, you can record Time & Quantities at each Operation but there is no way of extracting the Cost.

The nearest solution I devised at one client was to ESTIMATE the cost using a bespoke UBE based upon the Quantity at Operation fed into the P30208 MBF. It gave the Costs at Standard, not Actual.

A simpler alternative is to build a UBE over the F31122 and use the Costing data inside that Table. However, this won't give you material costs - you may have to then build an engine to link back to the Parts List to see what has been issued at each operation. It just ends up getting big and nasty - but not impossible. The bells and whistles mean that the way JDE Costs all this can be complicated and you may not end up with the result produced out of R31802. The Accountants don't like that!

Caution: When I tried to devise similar solutions in the past I found the Accountants then wanted to reconcile the result to the G/L. Examine the Business thinking closely - it is often based upon a complete lack of understanding of the reality of the Shop Floor process & the time delay before the accounting goes through. If you need analysis then best leave it until the WO is closed. Chasing WIP tends to be unrewarding.

Good point Mark -- indeed I did not give him a way to see materials costs at each operation. That information is not directly available since JDE does not keep track of issues per op sequence (which is what you need). So we have no way to capture costs of a single item being used in (possibly multiple) operations unless there is a work file created with a detail record for each item per op sequence/Work Center... and remember this work file should match the F4111.
Also don't think you can simply refer back to the BoM quantity since that may not be the quantity actually issued.

Rob, Check your F3111. The Total Actual Qty Transacted and the Operation Sequence are recorded... But, of course, your business does have to have the Ops on the BOM and then Issue to those OPs through P31113. This is how Costed Route P30208 works.... Cheers.

Mark,

I am trying to come up with the Functional Specification for a similar
report to the one you mention below.

The requirement is to accrue work order labour and overheads based on the
work centres where the activity took place.
The assumption is no mods to JDE software are allowed.

Standard JDE posts the accruals against either the Charge To Business unit
on the Work Order if the AAI B.U is left blank=20
(AAI 3401) or the B.U entered in the AAI.=20
Mfg Accounting (R31802) cannot split out the recovery (accrual) based on
where the activity took place.=20
This information does however, as you allude to, live primarily in the
F31122 table, as work order hours are recorded at operation level which is
linked to a work centre.

(The accounting business unit related to work centre can then be derived if
the 'Project Number' field on the Bus Unit record for the Work centre is
populated with the related accounting BU)

Anyway - I can calculate the labour, labour o/head and machine o/head costs
by work centre based on data in the F31122 (and related files such as Work
Centre Rates table), and then determine which BU the accruals should have
been allocated to.=20

Similarly, for any labour / ohead / material variances I have been able to
calculate the details - give or take some rounding differences. ( As you say
getting the same totals as per the R31802 is difficult).=20

The report would then be used as the basis for generating correcting journal
entries to re-allocate the accruals. The frequency of the re-allocations is
yet to be determined, but would be at a minimum monthly.

What I am struggling with, and wondered if you had come up with a solution,
was how to select only a given range of work orders on the report so that
the re-allocations do not get doubled up or missed.

The issue is essentially a financial issue, in that JDE Manufacturing
Accounting cannot allocate the accruals based on where the activity took
place (i.e. when the payroll costs are expensed they will be expensed
against employees in the business units related to the work centres).=20
As such the main driver for running the report to determine what
re-allocation entries are required is, in my mind, the G/L Date.
I can determine which entries in the F31122 and F3112 / F3111 tables have
been posted to the G/L, but cannot then link the work orders to the G/L and
as such the G/L Date so that the report can be run for a reporting period.
I am posting the work order number to the subledger field in the G/L so
maybe this is the link ?

If you had come across this problem when developing your clients' solution,
how did you solve or get around it ?

Any feedback would be very welcome.

Regards,

Adrian
Xe Update 6, Citrix, HP, Oracle