Creating a Department

Use the Departments form to group work centers for applying labor overhead rates and direct labor costs. To create a department:

  1. On the form, select Actions > New.
  2. Specify this information:
    Department
    Specify a six-character unique identifier composed of numbers, characters, or a combination. Specify a description for the department.
    Manager
    Select the code for the manager you want to assign to the department. The name of the manager is displayed.
    Unit Code
    Select the unit code to use for the department. A description of the code is displayed.
    Fixed Overhead Rate
    Specify the fixed overhead rate. This rate is used to determine the cost of each labor hour charged to a SRO for an operation.
    Variable Overhead Rate
    Specify the variable overhead rate in units of domestic currency per labor hour. This rate is used to cost each labor hour charged to a job for an operation at a work center of this department. It is also used in estimating the cost of a job.
  3. For these account fields, select the accounts to use by default at the production level for posting transactions:
    • Direct Labor Applied Account
    • Fixed Overhead Applied Account
    • Variable Overhead Applied Account
    • Fixed Overhead Rate
    • Variable Overhead Rate
  4. Save the record.