Indirect/direct overhead applied

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Posted on by Sean T.

I’m setting up (new implementation) our inventory production costing.

Where do you assign GL accounts for your Direct/Indirect overhead/Labor capacity costs that are created during the WIP (Production Journal) process? I.e. we’ve assigned material to the job in WIP, and have minutes for machine run time and have indirect overhead applied amount running through the routing’s, but can’t figure out how to set up the GL accounts to post those activities through.

We have the inventory posting setup complete for inventory GL, interim inventory GL, and WIP GL. I see the Variance fields in the inventory posting setups (mfg overhead, capacity overhead, etc), but I’m thinking that’s for standard costing variances, which we’re not using (we’re Average cost method). Is that correct?

Where do we assign the Cr. side of those WIP labor/overhead amounts?

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MahGah 15,613 on at

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Hi

You are correct on those fields in Inventory Posting Setup. Those are related to "Standard Cost". For you please look into General Posting Setup. Basically (this is my understanding) WIP (setup in inventor) debit for all those transactions (material/labor/overhead) when time/output post and then each of below accounts credit for transactions.