JCPROMLO Job Links Labour Overhead
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Quoting/Job Costing | Maintenance | F5 |More Options
Labour Overheads
There are two options for labour overheads on jobs. Only one of these options can be activated at a time.
1. | Calculate A Labour Overhead? – You can calculate a labour overhead based on the |
time sheet entries posted to jobs. This can be calculated on hours multiplied by an
overhead recovery rate , or labour cost multiplied by a percentage calculation rate.
When this option is ticked and you escape all open jobs will have labour overheads
added. If you untick the option the overheads are removed.
2. | BOM Labour Cost and Overheads on jobs – This option would be enacted where |
labour time against jobs is not entered in the system, but you still require labour
costs and overheads for WIP valuation. It calculates a labour cost and overhead
charged to jobs based on the BOM labour cost. This cost is multiplied by the
manufactured quantity on the job divided by the quantity to make. If the parts
manufactured equal the quantity to make, the labour cost and overhead will be
the same as the BOM labour cost.
You cannot have open jobs with timesheet entries and invoke the BOM labour costs on jobs button. This would result in the labour costs and overheads being overstated by the timesheet labour cost. The programme will force you to close open jobs with timesheet entries. A pdf report is produced with the open jobs that would need to be closed. The trigger for the update of BOM labour costs and overheads on jobs is at the point of manufacture. BOM labour cost is zero until the part has been entered in the JCMFG: Job manufacture screen.