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I wants the Fixed OH costs incorporated into the STD cost of all finished goods by year end. However, I am not sure how the Fixed OH field is calculated in GP. I have only figured out where a half (or portion) of the calculation comes from which is on the Machine Definition card . I need to figure out where the other half (or portions come from)?
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If the items you're looking at are finished goods or sub-assemblies, it would come from your primary routing. Also, if you have sub-assembies, and labor on your lower level items, it would accumulate so the labor portion of the component is rolled into the next level up. The labor on the sub-assembly (which includes the component labor) is rolled into the labor for the finished good. My example assumes 2 levels but works that way for as many levels as you have. My clients generally only put labor on the top level if it works that way. It is designed that way to see the material portion of the completed item, the labor portion, etc...
Dan Liebl, CMA CPIM | Senior Consultant | OTT,Inc | DLiebl@OTT-inc.com
Wesley, look also at your Labor Code Definition for OH on Labor and at your Standard Item Material Costs window if you need to apply OH to material cost. Fixed OH at the Machine ID level allows you to add OH at the Machine level, of course.
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