Displaying Estimated vs. Actual Hours Costs

If the Process Hours using field in the Production Order Parameters (tisfc0100s000) session is Estimated Operation Rates, the hours cost are calculated by using the operation rate, and the cost component from the Standard Cost Calculation module.

If the value of the Process Hours using field in the Production Order Parameters (tisfc0100s000) session is Actual Labor Rates, the hours costs are calculated by using rates and cost components from the machine data in the Machines (Machine Types) (tirou0102m000) session, and employee data from the Items (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.