web
You’re offline. This is a read only version of the page.
close
Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Adding cost of Labour ...
Microsoft Dynamics AX (Archived)

Adding cost of Labour to product cost

(0) ShareShare
ReportReport
Posted on by Muhammad Saad 990
Dear Group membersI am using AX-2009, my client is in fruit processing business, what they do is buy fruits from market process it and then export it.There is a scenario in which I am stuck, the case is that they buy fruit which is raw material for them and then add some more raw materials and then pack it to export it.In the above process labour is also involved but labour is paid a fixed wage per month irrespective of the volume of fruits or time they work, furthermore more labour is arranged at times when there are higher volumes, but they are also paid a fixed wage per annum.Now, how to add this labour cost into the product cost if I am using BOM journal or even if I use Production 1 or Production 2.    RegardsMuhammad Saad

 

*This post is locked for comments

I have the same question (0)
  • Darren Finch Profile Picture
    Darren Finch 50 on at
    Sounds like you have your costing set as standard, where process industries or manufacturing in general you should have your costing set for actual. This allows you to add the costs of manufacturing as you go meaning a accurate final cost of manufacturing. Actual costing means for each M/O you can add the cost of everything involved to product your finished goods accurately. I'm not sure if your client needs a AX add-on for process manufacturing, like Fullscope. Its a great product designed specifically for the process industry, so its something you should look at in Partnersource and decide if your clients needs would be better served using their AX add-on.
  • Muhammad Saad Profile Picture
    Muhammad Saad 990 on at

    Thanks Darren,

    No my client do not need Process Solution. I just wanted to know how to cater fixed Manufacturing cost, the case is that labour cost is fixed and it sould be charged to product cost, but I dont know how to do it in AX. 

    Regards

    Muhammad Saad

  • Darren Finch Profile Picture
    Darren Finch 50 on at
    I would check inventory (and also check the BOM in Manufacturing)it should be in there. Be aware that to change from Standard to Actual costing means a change in how the company runs accounting, recording of costs both in manufacturing, raw materials, receiving of anything accounted for in your AX accounts. It is a major shift in the way people account for all costs in the manufacturing cycle, some people don't want to do it but to accurately figure profit or loss you need those numbers. Manufacturing is different to distribution and the costs have to be recorded differently. I would refer to costing in the AX online help to get a better understanding of what it can do for you and your client and the processes needed to set them up correctly the first time

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

Responsible AI policies

As AI tools become more common, we’re introducing a Responsible AI Use…

Neeraj Kumar – Community Spotlight

We are honored to recognize Neeraj Kumar as our Community Spotlight honoree for…

Congratulations to the November Top 10 Community Leaders!

These are the community rock stars!

Leaderboard > 🔒一 Microsoft Dynamics AX (Archived)

#1
Martin Dráb Profile Picture

Martin Dráb 4 Most Valuable Professional

#1
Priya_K Profile Picture

Priya_K 4

#3
MyDynamicsNAV Profile Picture

MyDynamicsNAV 2

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans