Displaying Estimated vs. Actual Hours Costs

If the Actual Operation Rates field in the Shop Floor Control Parameters (tisfc0100s000) session is Estimated Operation Rates, the hours cost are calculated by using the operation rate, and the cost component from the Cost Price Calculation module.

If the value of the Actual Operation Rates field in the Shop Floor Control Parameters (tisfc0100s000) session is Actual Man and Machine Rates, the hours costs are calculated by using rates and cost components from the machine data in the Machines (tirou0102m000) session, and employee data from the Items - General (tcibd0501m000) session.

The hours costs are disaggregated to labor cost, machine cost, and overhead cost. For posting the overhead, LN checks the Cover Overhead Costs in Employee Department parameter in the People Parameters (bpmdm0100m000) session.

The postings are generated on the moment of Process Hours Accounting. The number of hours are:

  • Entered manually
  • Generated by backflushing
  • Entered with direct time recording

The operations costs are posted to the calculation office or to the work center's enterprise unit. The postings for operations costs are done for the following transaction origin/financial transactions:

  • Production
  • Operation costs

Hours are posted against the detailed cost components that you have defined in the operation rates. Price and efficiency variances are calculated based on these detailed cost components.

Note

If you have started Estimated vs. Actual Hours Costs (ticst0502m000) by zooming, you can only find and select a record.

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