Just-in-Time Journal Entry - Calculations

IA140E

A. Housekeeping

1. Work fields are initialized. The processing which occurs within housekeeping is only performed once.

2. The following information is retrieved from the Reference file (REFERP):

a. For a demand or final post, the IA period end parameters (Reference File category 460) is retrieved and updated with the current program name.

b. The file access status codes (Reference File category 015) is retrieved. If it is not found, the program aborts.

c. The date format (Reference File category 049) is retrieved. If this record is not found, the date format defaults to MMDDYY, a message is sent to the system operator, and processing continues.

d. The valid part type codes and decodes (Reference File category 405) are retrieved and loaded into arrays PDC and PDD. If not found, blanks are formatted.

e. The field decimal precision record (Reference File category 446) is retrieved. If this record is not found, the program terminates abnormally.

f. The valid production type codes decodes (Reference File category C01) are retrieved. If it is not found, blanks are moved into arrays PDC and PDD.

g. The flow interval information record (Reference File category C05) is retrieved to identify the source to be used when loading the Flow Interval Start Dates Array. If this record is not found, the program terminates abnormally.

h. The Flow Authorization Start Number record (Reference File category C09) is retrieved to obtain the starting flow authorization number. If this record is not found, the beginning number defaults to 0000001.

i. The JIT common features data structure (Reference File category C11) is retrieved to determine whether time is reported or not. If this record is not found, the program aborts.

j. The valid rate codes (Reference File category C17) are retrieved and loaded into an array RCD.

B. Mainline

1. The priming read is performed on the logical JIT audit trail file (IA140AL). A valid audit trail has an IA process flag of ' '. The processing is performed once, each time this program is called. If a valid audit trail is retrieved, it will provide the data needed to enter the processing loop. Otherwise, this program will end.

2. When a new company/location is encountered, the company name is retrieved from Reference File category 002, the current accounting period is retrieved from Reference File category 023, and the period end date for the company/location is retrieved from Reference File category 013. If the cutoff date is not blank, it is compared against the period end date. The lesser of the two dates is used as the period end date. The WIP account is retrieve from Reference File category 451 using the saved WIP accounting code.

3. After the priming read, all JIT audit trails are processed until the end of the logical file.

a. The part master record for the part that is currently being processed is retrieved. Descriptive data is saved for future processing. If the part number is not found, the program aborts.

b. If the part's Configuration Code Option (PMCFCO) is 3 or 4 the part is configuration costed. For all configuration costed parts the Configuration Code is retrieved from the Configuration Assignment Master file (EC170M). Once the Configuration Code is determined, the Configuration Costs are retrieved from the Configuration Code file (EC140M). These costs are used instead of those held for the part on the Part Master file (DE100M).

c. All audit trails for the same part are processed until the part number changes or end of file.

(1) All audit trails that are less than or equal to the accounting period end date or requested cutoff date (the lesser of the two) are processed.

(2) Audit trails are processed based on the type of audit trail.

(a) If a flow receipt audit trail was read, receipt activity is determined. Next the journal entries are calculated and written to IA110AP.

¾ The transaction value is determined by multiplying the production receipt qty (CZPQTY) which is changed from the alpha format to a numeric format (SVPQTY) by the parts total value which was saved. (SVPQTY * SVASCT = SVRVAL)

¾ The receipt quantity is accumulated. (SVPQTY + RCPQTY = RCPQTY)

¾ The account number is retrieved from the process account number assignment record (Reference File category 451). If the account number is not found, the journal entry is created using the suspense account number and a warning message is printed.

¾ A credit entry is made to the work in process account.

¾ A reversal (CZRVCD = R) will have the opposite effect.

¾ The account number is retrieved from the inventory account number assignment record (Reference File category 452). If the account number is not found, the journal entry is created using a suspense account number and a warning message is created.

¾ A debit entry is made to the inventory account.

¾ A reversal (CZRVCD = R) will have the opposite effect.

(b) If a flow issue audit trail was read, the part master record for the component part is retrieved (if the component part number is not the same as the previous component part number). If the record is not found, the program aborts.

¾ Inventory journal entries are written to IA110AP.

¾ The transaction value is determined by multiplying the production receipt quantity (CZPQTY) which is changed from the alpha format to a numeric format (SVPQTY) by the parts master accounting standard cost total field (PMASCT) for non-configured costed parts or (CCASCT) for configured costed parts.

Thus: (SVPQTY * PMASCT = SVRVAL) for non-configuration costed parts
or (SVPQTY * CCASCT = SVRVAL) for configuration costed parts.

¾ If this is an unplanned material usage record, the JIT Transaction file (JT170BL1) is updated with the issue (usage) value. Otherwise, the issue value is accumulated. (SVRVAL + ISSVAL = ISSVAL)

¾ A debit entry is made to the work in process account if this is not an unplanned material usage. If this is an unplanned material usage, the debit entry is made to the scrap expense account.

¾ A reversal (CZRVCD = R) will have the opposite effect.

¾ A credit entry is made to the inventory account.

¾ A reversal (CZRVCD = R) will have the opposite effect.

(c) If a time reporting audit trail was read, and time is reported according to Reference File category C11, then the workcenter record is retrieved (if the workcenter number does not match the current workcenter number). If the workcenter record is not found, the program aborts. If the workcenter is a miscellaneous cost workcenter, cost information is retrieved from the Miscellaneous Cost Header file. If this record is not found, the cost is set to zero.

Next, the audit trail is processed depending on what type of time reporting audit trail it is.

¾ The rate code totals for a workcenter are written for the labor and burden reports. The workcenter totals are written for the miscellaneous cost reports. Part totals are accumulated from workcenter totals.

¾ If a direct labor audit trail was read (CZTRAN = J75), then direct labor hour journal entries are processed.

¾ The labor hours are applied to each workcenter rate code that is considered a labor cost (Cost Type (WRTYPE) = L on ME105M) in the following way:

- Transaction value is calculated by multiplying the labor hours by the workcenter labor rate. (SVPQTY * WARATE = SVRPVL)

- Shop floor journal entries are written to IA120AP.

- Workcenter labor hours and value are accumulated. (WCTLH = SVPQTY + WCTLH) (WCTLC = SVRPVL + WCTLC)

- The account number is retrieved from the process account number assignment record (Reference File category 451). If the account number is not found, the journal entry is created using the suspense account number and a warning message is printed.

- A debit entry is made to the work in process account.

- A reversal (CZRVCD = R) will have the opposite effect.

- A credit entry is made to the burden accrual account number.

- A reversal (CZRVCD = R) will have the opposite effect.

- The labor hours are applied to each workcenter rate code that is considered an overhead cost and a labor-application basis in the same way as burden journal entries are processed.

- If a direct machine audit trail was read (CZTRAN = J85), then journal entries are processed.

- The machine hours are applied to each workcenter rate code that is a machine-application basis in the following way:

- Transaction value is calculated by multiplying the machine (or labor) hours by the workcenter rate code burden rate. (SVPQTY * WRABRD = SVBVAL)

- Workcenter burden hours and value are accumulated. (WCBHRS = SVPQTY + WCBHRS) (WCBVAL = SVBVAL + WCBVAL)

- Shop floor journal entries are written to IA120AP.

- A debit entry is made to the work in process account.

- A reversal (CZRVCD = R) will have the opposite effect.

- A credit entry is made to the burden accrual account number.

- A reversal (CZRVCD = R) will have the opposite effect.

¾ If a miscellaneous cost audit trail was read, then miscellaneous cost journal entries are processed.

- Transaction value is calculated by multiplying workcenter miscellaneous cost rate (MHMSCA) by audit trails quantity field. (SVBVAL =MHMSCA * SVPQTY)

- Workcenter total miscellaneous quantity and value are accumulated in (WCMCQT and WCMCV).

- Shop floor journal entries are written to IA120AP.

- A debit entry is made to the work in process account.

- A reversal (CZRVCD = R) will have the opposite effect.

- A credit entry is made to the miscellaneous cost accrual account number.

- A reversal (CZRVCD = R) will have the opposite effect.

(d) Material variances are calculated and written for all parts that have a material variance not equal to zero.

¾ Material variance is calculated by first determining the standard material cost. Standard material cost equals receipt quantity multiplied by the storage field, which contains the accounting standard cost of material (SMAC = RCPQTY * SVASCM). The material variance equals the standard material cost minus the actual issue value (MATVAR = SMAC - ISSVAL).

- Manufacturing order journal entries are written to IA130AP.

- An entry is made to the work in process account if the material variance is not = 0. A positive variance creates a debit journal entry, and a negative variance creates a credit journal entry.

- An entry is made to the variance account if the material variance is not = 0. A positive variance creates a debit journal entry, and a negative variance creates a credit journal entry (this is a liability account).

(e) Calculate labor variances if time is reported.

¾ Labor variance is calculated by first determining the standard labor cost. Standard labor cost equals receipt quantity multiplied by the storage field, which contains the accounting standard cost of labor (SLAC = RCPQTY * SVASCL). The labor variance equals the standard labor cost minus the actual labor costs (LABVAR = SLAC - TLCP).

- Manufacturing order journal entries are written to IA130AP.

- An entry is made to the work in process account if the labor variance is not = 0. A positive variance creates a debit journal entry, and a negative variance creates a credit journal entry.

- An entry is made to the variance cost account if the labor variance is not = 0. A positive variance creates a debit journal entry, and a negative variance creates a credit journal entry (this is a liability account).

(f) Calculate burden variances if time is reported.

¾ Burden variance is calculated by first determining the standard burden cost. Standard burden cost equals receipt quantity multiplied by the storage field which contains the accounting standard cost of burden (SBAC = RCPQTY * SVASCO). The burden variance equals the standard burden cost minus the actual burden costs (BURVAR = SBAC - TBCP).

- Manufacturing order journal entries are written to IA130AP.

- An entry is made to the work in process account if the burden variance is not = 0. A positive variance creates a debit journal entry, and a negative variance creates a credit journal entry.

- An entry is made to the variance account if the burden variance is not = 0. A positive variance creates a debit journal entry, and a negative variance creates a credit journal entry (this is a liability account).

(g) Calculate miscellaneous cost variances if time is reported.

¾ Miscellaneous cost variance is calculated by first determining the standard miscellaneous cost. Standard miscellaneous cost equals receipt quantity multiplied by the storage field, which contains the accounting standard cost of material (SMCC = RCPQTY * SVMAT). The miscellaneous cost variance equals the standard miscellaneous cost minus the actual miscellaneous costs (SMCVAR = SMCC - TMCV).

- Manufacturing order journal entries are written to IA130AP.

- The account number is retrieved from the process account number assignment record on Reference File category 451. If the account number is not found, the journal entry is created using the suspense account number and a warning message is printed.

- An entry is made to the work in process account if the miscellaneous cost variance is not = 0. A positive variance creates a debit journal entry, and a negative variance creates a credit journal entry.

- An entry is made to the variance account if the miscellaneous cost variance is not = 0. A positive variance creates a debit journal entry, and a negative variance creates a credit journal entry (this is a liability account).

(h) Calculate standard labor journal entry if time is not reported.

¾ Standard labor journal entries are calculated by first determining if the receipt quantity is greater than the six significant digits. If it is, then a journal entry is created for 999999.000. This continues until journal entries are created to cover the whole receipt quantity.

- Standard and actual labor is calculated by multiplying the work field with the receipt quantity by the part's accounting standard cost of labor (TLCP and SLAC = PSTRCP * SVASCL).

- Manufacturing order journal entries are written to IA130AP.

- An entry is made to the work in process account. A positive amount creates a debit journal entry, and a negative amount creates a credit journal entry.

- An entry is made to the direct labor account if the receipt quantity is not = 0. A positive receipt quantity creates a debit journal entry, and a negative receipt quantity creates a credit journal entry.

(i) Calculate standard burden journal entry if time is not reported.

¾ Standard burden journal entries are calculated by first determining if the receipt quantity is greater than the six significant digits. If it is, then a journal entry is created for 999999.000. This continues until journal entries are created to cover the whole receipt quantity.

- Standard and actual burden is calculated by multiplying the work field with the receipt quantity by the part's accounting standard cost of burden (TBCP and SBAC = PSTRCP * SVASCO).

- Manufacturing order journal entries are written to IA130AP.

- An entry is made to the work in process account. A positive amount creates a debit journal entry, and a negative amount creates a credit journal entry.

- An entry is made to the direct burden account if the receipt quantity is not = 0. A positive receipt quantity creates a debit journal entry, and a negative receipt quantity creates a credit journal entry.

(j) Calculate standard miscellaneous cost journal entry if time is not reported.

¾ Standard miscellaneous cost journal entries are calculated by first determining if the receipt quantity is greater than the six significant digits. If it is, then a journal entry is created for 999999.000. This continues until journal entries are created to cover the whole receipt quantity.

- Standard and actual miscellaneous cost is calculated by multiplying the work field with the receipt quantity by the part's accounting standard miscellaneous cost total (TMCV and SMCC = PSTRCP * SVMAT).

- Manufacturing order journal entries are written to IA130AP.

- An entry is made to the work in process account. A positive amount creates a debit journal entry, and a negative amount creates a credit journal entry.

- An entry is made to the miscellaneous cost account if the receipt quantity is not = 0. A positive receipt quantity creates a debit journal entry, and a negative receipt quantity creates a credit journal entry.

(3) If this is a demand or final post run, the audit trail is flagged as processed, and updated with the accounting period and year it was posted.

4. All necessary reports are written as follows:

a. The summary report is formatted and written.

(1) Part decode is retrieved from the array which was loaded in housekeeping.

(2) Production decode is retrieved from the array which was loaded in housekeeping.

b. If time is reported there, part labor, burden, and miscellaneous cost totals are accumulated for the company and time reporting reports are written, if needed.

(1) If total labor hours for a part are not equal to zero, the total labor hours and value are written on the labor summary report.

(2) If total burden hours for a part are not equal to zero, the total burden hours and value are written on the burden summary report.

(3) If total miscellaneous cost hours for a part are not equal to zero, the total miscellaneous cost hours and value are written on the burden summary report.

(4) Part totals are reinitialized.

c. Work fields are reinitialized.

C. Windup

1. When processing is complete, the activity cost summary report and the JIT Part Activity file are checked to see if any records were written to them. If no records were written, an error message is written, else the end of report line is written.

2. If time is reported, the labor, burden, miscellaneous cost reports, and the JIT Part Activity file are checked to see if any records were written. If no records were written an error message is written. If records have been written, the company totals and end of report message is written. (Since these files are user controlled, they are also closed.)

3. For a demand or final post, the IA period end parameters category (460) is retrieved. The program name on the category is formatted with blanks to indicate successful processing by IA140E.

Menu

Just-in-Time Journal Entry - Calculations

IA140E Program Menu