Material and Labor Overhead (burden)

[Hemant]

Axapta has no way to calculate the Labor Overhead. The only workaround is to
create a workcenter and use that in route, but it is quiet frustrating for
customers who had migrated from systems where they were having different
fields in Item Master to indicate the Inventory Cost and its break up.
BAsically the break up is

Material (from BOM) + Labor + Labor O/H , most ERP solutions just show
these break up of cost in the Cost Tab. There are some ERP solutions which
even post the related to General Ledger. Just to explain that, when a
Production order is created and reported, the GL inquiry actually breaks up
the entries in ledger inquiry based on Material, Labor (which is there in
Axapta) but missing is Labor Overhead. This can be a fixed overhead but we
have no way to input this factor and account in General Ledger.

So I think this is one of the areas which Axpata should fill in and help the
customers.

Thanks,

Hemant Kumthekar

Certified Axpata Master of Application

mca Connect, Houston, TX USA.

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[James Beeler]

What about Item+Category ledger posting and using secondary priority
operations? This provides for posting direct labor accounts on the primary
operation as well as fixed and variable overhead accounts thru the seconday
operations, however, feedback reporting through the route card journal is
required for both primary (direct) and seconday (indirect) operations to post
actual variable overheads.

Routing groups must be set up for fixed and variable overhead operations to
prevent undue capacity reservations, provide appropriate cost estimations and
to control posting of feedback.

True, you still do not readily get to see the costs broken out into
material, labor, and overhead, but coding cost groups on the cost categories
provides some reporting capabilities.
--
jbb

[Blits@discussions.microsoft.com Manny Blits]

James: I agree with what you are saying, however, either item+workcenter or
item+category doesn't solve the problem of a separate step in the routing to
capture overhead on a different ledger account. Even more if fixed and
variable overhead needs to be split out separately. This is a fundamental
design flaw of Axapta and causes extra work.

Manny