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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Mfg Machine Applied
Microsoft Dynamics GP (Archived)

Mfg Machine Applied

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Posted on by Joe PencilPusher 1,855

Looking over GP10 Manufacturing.  Regarding the Labor Applied account, I see how that works:

To Apply STD labor costs to WIP:
Dr. WIP
Cr. Labor Applied (Clearing account holding STD costs off the Router NOT actual costs )

When we pay our employees
Dr. Labor Applied
Cr. Cash for actual labor costs

Balance in Labor Applied used for variance analysis:
•    if we have a Cr. balance in Labor Applied then our actual labor costs were lower than STD costs
•    if we have a Dr. balance in Labor Applied then our actual labor costs were greater than STD costs
A debit balance in a variance account is always unfavorable.


Now Machine time
To Apply STD machine time costs to WIP:
Dr. WIP
Cr. Machine Applied (Clearing account holding STD costs off the Router NOT actual costs )

When does this account get debited?  When MO is received, WIP is credited and FG is debited for accumulated costs. Machine Applied is not touched.

How to know my machine time variance?

*This post is locked for comments

  • GPDavid Profile Picture
    GPDavid 2,250 on at
    RE: Mfg Machine Applied

    Yes, that is correct.  The Source Document should be "DC_ADJ" and the Reference should contain the MO number against which the time was entered.

  • Joe PencilPusher Profile Picture
    Joe PencilPusher 1,855 on at
    RE: Mfg Machine Applied

    I tested this on a test system.  I “saved” (posted) a few Data Collection transactions and went looking for the batches. I logged onto the test system as sa and I saw a new Financial Series batch listed with the batch id of sa so I’m assuming the Mfg DC transactions create the batch under the Financial Series and with a batch id using the id of the currently logged on user?

  • GPDavid Profile Picture
    GPDavid 2,250 on at
    RE: Mfg Machine Applied

    Hello,

    Even though there is no 'Post' button, GL entries are created from the Data Collection window when you save the entry.

    At this time, the WIP Labor or WIP Machine accounts will be debited based on the rate on the selected Labor Code or Machine Code card times the actual labor hours or machine hours entered in the Data Collection Entry window.  Labor or Machine Applied will be the offsetting credit entry.

    These amounts will remain in WIP until you post the Manufacturing Order Receipt.  At that time, WIP will be credited at the standard cost of the finished good for the quantity of the FG being received at the time.

    Any remaining value in WIP will be debited or credited (depending on the nature of the variance) and transferred to Variance accounts at the separate MO Close process (note: this is separate from MO Receipt).

    David

  • Joe PencilPusher Profile Picture
    Joe PencilPusher 1,855 on at
    RE: Mfg Machine Applied

    Not sure yet, before I can make a decision I need to know how it all works.

    A few things confuse me…well…more than a few, but…

    Let’s say I use a traveler so to enter “actual” direct labor and “actual” machine time costs I would use the Data Collection window correct?  When posted the standard costs will post to WIP accounts for the FG and actual costs will post to the labor & machine GL accounts from the components, do I have this right so far?

    However, there is no Post button on the Data Collection screen.  So is the only time these accounting transactions take place is when a FG Receipt is posted?  (A Partial or Full Receipt)  What if I’m building something that takes months before it’s finished?

    Let me know if I am understanding this or if I am way off base… :)

  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 4,029 Super User 2024 Season 2 on at
    RE: Mfg Machine Applied

    Are you recording actual machine time?

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