Hours accounting procedure

Central hours accounting

The People package is used to register hours for logistic packages such as Manufacturing. You can define hours for employees, a complete team, or machines.

The following three transaction types are used for hours accounting:

  • Production order (operation).
  • Assembly (clustered line-station order).
  • PCS Project (activity).

You can also compare actual hours with budgeted hours. You can make budgets by employee, by team, and by department. When you no longer need the hours data, you can move the data to an archive company.

Prerequisites

Before you can enter hours data, you must set up the related variables.

These variables include:

  • Enterprise unit
  • Employee data
  • Calendar code (for the budget)
  • Department
  • Project and activities
  • Production order and operations
  • Price calculation codes
  • Cost components
  • Operation rate codes
  • Work centers
  • Machines
  • Tasks
Note: If you use the Enterprise Modeler Content Pack with LN, consider using the MBP1000 (Hours Accounting for Production Orders) wizard to set up hours accounting for production orders. You can execute this predefined wizard from the Wizards by Project Model (tgwzr4502m000) session after you specified the business function model for your company. See Business function model.

The hours accounting procedure

The hours accounting procedure goes through the following stages:

  1. Entering master data and hours budgets.
  2. Entering hours
  3. Processing hours
  4. Hours accounting history
  5. Archiving hours

1. Entering master data and hours budgets

You can set up a working time schedule in the Working Time Schedule (tcppl1100m000) session. You can define a labor type, in terms of surcharges, in the Labor Types (tcppl0130m000) session.

You can define budgets in:

  • The Budget by Employee (bptmm3100m000) session.
  • The Budget by Department (bptmm3110m000) session.
  • The Budget by Team (bptmm3120m000) session.

2. Entering hours

You can enter hours transactions in any of the following sessions:

  • Production Order Hours (bptmm1120m000)
  • Assembly Hours (bptmm1160m000)
  • Project (PCS) Hours (bptmm1170m000) For more information on hours accounting, refer to Using hours accounting.

You can display hours transactions in the Hours and Expenses by Employee Overview (bptmm1100m000) session.

Statuses

An hours transaction can have one of the following hour statuses:

  • Active

    The activity or operation is still in progress. When you enter a new hours transaction, LN asks you whether the previous active hours transaction must be closed. If you close this previous hours transaction, LN calculates how many hours were spent on the operation or activity in question with the planned hours of the Working Time Schedule (tcppl1100m000) session. If you do not want to close the previous hours transaction, you can choose to interrupt the transaction. LN calculates how many hours were spent on the operation or activity concerned with the working time schedule. The hours-transaction status becomes Interrupted.

  • Interrupted

    If work for an operation or activity is temporarily interrupted and another activity has begun, you must interrupt the hours transaction. The Day-End Hours Accounting Processing (bptmm1205m000) session enables you to interrupt an active hours transaction up to a particular date. You can automatically reactivate the hours transaction on the first normal workday after a certain date. The first normal workday is determined based on the working time schedule that is assigned to the employee.

  • Closed

    When an hours transaction is assigned the Closed status, the transaction can no longer be activated; the hours must be processed.

3. Processing hours

Until you process the data, hour transactions can still be edited. When you run the Process Hours and Expenses (bptmm1203m000) session, the hours accounting data is stored as hours history and can no longer be edited. Then, if you want to make any changes, you must post additional hours. The data is then available to be used for cost accounting in other modules.

4. Hours history

You can produce reports about the history data that is produced by processing hours accounting in the following sessions:

  • Project (PCS) Hours History (bptmm2570m000)
  • Production Order Hours History (bptmm2520m000)
  • Assembly Hours History (bptmm2560m000)

5. Archiving hours

  • In the Archive/Delete Hours and Expenses History (bptmm2225m000) session, you archive the hours for employees or machines that you entered in the hours accounting session.
  • You can archive the hours history data you created by processing hours in the Process Hours and Expenses (bptmm1203m000) session.
  • You can archive hours budgets in the Archive/Delete Overall Budget (bptmm3230m000) session.