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Indirect cost on Finished Production Order

  • 1.  Indirect cost on Finished Production Order

    Posted Feb 04, 2020 10:59 AM
    Hello All,

    I have a finished production order with indirect cost posting to G/L, not sure where that came from.
    I did multiple tests scenarios but not being able to replicate the issue. Any ideas on where that comes from?
    thanks in advance!

    ------------------------------
    Alicja
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Indirect cost on Finished Production Order

    TOP CONTRIBUTOR
    Posted Feb 05, 2020 01:04 AM
    These will usually come from one of two places.  The first would be any indirect costs specified on the work centers included on the routing for produced item.  The second place is if you entered "Indirect Cost %" on the item card itself.  The value for this second entry will get added after the production order finishes and adjust costs runs.

    ------------------------------
    David Wiser
    Client Lead
    Tigunia
    2019-2020 Board of Advisors
    BCUG|NAVUG All-Star
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 3.  RE: Indirect cost on Finished Production Order

    TOP CONTRIBUTOR
    Posted Feb 05, 2020 10:37 AM
    Alicja - adding to David's comment. Any Indirect% or Overhead amounts filled in on the Item record will be reflected on the Production Order in Statistics as Manufacturing Overhead. In the produced item's inventory posting group is the account that is used for Manufacturing Overhead.

    Best Regards
    John Grant
    Innovia Consulting

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    John Grant
    Senior Application Consultant
    Innovia Consulting
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 4.  RE: Indirect cost on Finished Production Order

    Posted Feb 05, 2020 11:44 AM
    David, John,

    thank you both very much for the replies!
    In statistics, I do show overhead cost, but once I finish the production order, this is not posting to G/L as indirect cost so I'm still not able to replicate.
    My work centers are not setup with any indirect cost. I think it was a process issue that caused the indirect cost posting?
    But I still would like to know how this happens :) 
    thank you!


    ------------------------------
    Alicja
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 5.  RE: Indirect cost on Finished Production Order

    TOP CONTRIBUTOR
    Posted Feb 05, 2020 12:05 PM
    The Manufacturing Overhead is generally a result of the second thing I mentioned earlier in that you may have a percentage in the "Indirect Cost %" field on the item card of the produced item.  The amount generated by this setting is posted to the account specified on the Inventory Posting Setup page using the "Mfg. Overhead Variance Account" (see below).  Is this where you are seeing the amount posted?


    ------------------------------
    David Wiser
    Client Lead
    Tigunia
    2019-2020 Board of Advisors
    BCUG|NAVUG All-Star
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 6.  RE: Indirect cost on Finished Production Order

    Posted Feb 05, 2020 12:29 PM
    Hello David,

    Yes, I do have Indirect cost on the item card, I thought that is for purchase only? Otherwise I would see all finished production orders with Indirect Cost posting on all my items set with indirect cost set on item card?
    I have other finished production orders for the same item and I do not have indirect cost posted to G/L..?
    I do not have Mfg Overhead Variance Account setup for my Inventory Posting Groups
    I see the Indirect Cost in the GL Entries for that finished production order.

    thank you!!!

    ------------------------------
    Alicja
    ------------------------------

    Academy - Online Interactive Learning from Experts


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