<< Click to Display Table of Contents >> Navigation:  Core Data > Workcenter Details > Workcenter Cost and Charge Set-up

 

Overview:

Costing in the ITMS system is created by a combination of Labour times booked against thejob and the Materials/Sub Parts that are issued to a job. For each hour expended of labour there is (workcenter cost + Employee cost) multiplied by the hours to create “Labour Cost”. A Charge out is also calculated from the Workcenter OR from specific employee rates.

Details of Workcenter rates and Employee rates are shown in the two diagrams below.

 

 

Note: Cost (Workcenter is only picked up when booking time to a production order. As each hour is used on a workcenter the TOTAL of Hours X “Cost (Workcenter) “ PLUS Hours X “Emp Cost” ( from the employee record ) is recorded as the actual Labour costing.

 

 

 

Part costing Parameters

Calculation of Part Sell prices and Part cost uses the rates from the Workcenter (see above) and either the Material Price at Preferred supplier set price OR using the Last purchase price of the material. A sell price can be calculated using either a Cost Plus Markup or by using the Charge out rate plus material and Markup.

Refer Parts window below – This example is using the Calculated sell price, refer diagram below for the breakdown of Sell price.

 

 

 

Last Revised: 28/10/2010 SJ