The following describes the accounting transactions the system creates when you report operations for a manufacturing order.
Note: This example displays the transactions for reporting on run/labour cost. Depending on the cost model equations, other calculations are created when you report set-up cost, machine cost, tools etc. The calculations are based on the assumption that the preloaded default cost model (*DFT) is used. Refer to About cost models for more information.
Prerequisites
The following values are used in the transaction calculations in this example:
| Variable | Value |
|---|---|
| Run/labour time | 4 |
| Run/labour price | 100 |
| Work centre overhead % 1 | 10 |
| Item group base value overhead (%) | 10 |
Created transactions
The following transactions are created in the PRO012 program when operations are reported for a manufacturing order:
| Transaction type | Description | Amount Debit |
Amount Credit |
Additional info |
|---|---|---|---|---|
| 100 | Operation reporting | 400 | Run/labour cost (Cost model element 30) | |
| 101 | Operation reporting | 400 | Run/labour cost (Cost model element 30) | |
| 110 | Operation reporting | 40 | Production overhead (Cost model element 80) | |
| 111 | Operation reporting | 40 | Production overhead (Cost model element 80) | |
| 141 | Reception reporting | 44 | Base value overhead (Cost model element 90) | |
| 142 | Reception reporting | 44 | Base value overhead (Cost model element 90) |
Calculations
The following equations outline how the values in this example have been calculated:
| Calculated value | Equation | Calculation |
|---|---|---|
| Run and labour cost | Run and labour time * Run and labour price | 4 * 100 = 400.00 |
| Production overhead | Summary of cost elements 30, 40, 50, 60 and 70 * Work centre overhead % 1 | 400 * 0.1 = 40 |
| Base value overhead | Summary of cost elements 10, 20, 30, 40, 50, 60, 70 and 80 * Item group base value overhead | 400 + 40 * 0.1 = 44 |