Skip to main content

Notifications

Supply chain | Supply Chain Management, Commerce
Unanswered

Labor cost charge as a piece rate to production

(3) ShareShare
ReportReport
Posted on by 107
Hi all,
 
I would like to understand how labor piece rates can be applied to production. In the documentation, it’s mentioned that we can create a route of type “Quantity” and assign a quantity-based cost category, but there is no information on how to register piece rate costs upon the completion of an operation in the route journal.
 
Scenario:
 
The route consists of multiple operations, each requiring a different number of workers to complete. For example:
 
Operation 1 requires 3 workers.
Operation 2 requires 5 workers.
Operation 3 requires 4 workers, and so on.

Each operation has a fixed piece rate:
Operation 1 has a rate of $10.
Operation 2 has a rate of $12.
Operation 3 has a rate of $15, etc.

When a worker completes work for a specific operation, they will earn the piece rate assigned to that operation. For instance, if a worker belongs to operation 1, they will receive $10, and this amount will be charged to production as well. The same applies to other operations, with the corresponding piece rate being charged to production.
 
I need guidance on how to configure this setup so that piece rates are captured and costs are transferred to both production and payroll. Specifically, I would like to know how to register the completion of an operation based on quantity, ensuring that workers earn their piece rates, and how this information is transferred to payroll.
 
Please provide instructions on how to achieve this.​​​

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Announcing Our 2025 Season 1 Super Users!

A new season of Super Users has arrived, and we are so grateful for the daily…

Announcing Forum Attachment Improvements!

We're excited to announce that attachments for replies in forums and improved…

Vahid Ghafarpour – Community Spotlight

We are excited to recognize Vahid Ghafarpour as our February 2025 Community…

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 291,971 Super User 2025 Season 1

#2
Martin Dráb Profile Picture

Martin Dráb 230,846 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Featured topics

Product updates

Dynamics 365 release plans