Manufacturing Order Journal Entry Creation - Calculations

IA130E

A. Housekeeping

1. See the Common Processing Routines - Housekeeping section of this manual for a general discussion of this subroutine. Processing specific to this program is described below.

2. A parameter list is set up to receive the parameters passed from the Inventory Accounting Period-End Close program (IA050E).

3. Key lists are defined for each file retrieved by the program.

4. Work fields are defined and program constants are initialized.

5. The following records are retrieved from the Reference file (REFERP):

a. The IA period end parameters (category 460) is retrieved and updated with the current program name for a demand or final post.

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

c. Order/receipt and inventory balance/movement quantity decimal positions are retrieved from the field decimal precision record (Reference File category 446). If this record is not found, a message is sent to the system operator and the program terminates.

d. The accounting close grace period record (Reference File category 456) is retrieved. If this record is not found, a message is sent to the system operator and processing is terminated.

e. The zero decimal currency codes are retrieved from Reference File category D89 and loaded into an array.

f. For a demand or final post, the IA recovery parameters (N26) are retrieved.

B. Mainline

1. The Manufacturing Order file (IC100L13) is read until end of file. If recovery parameters were found, these are used to set lower limits on IC100L13. Only manufacturing orders that are open or closed are processed. The parent part on the M.O. is checked for the costing option. If the Configuration Code Option (PMCFCO) is 3 or 4 the Accounting Costs associated with the Part Number/Configuration Code from the Configuration Code file (EC140M) are used instead of those associated with the Part Number form the Part Master file (DE100M).

2. If a company/location break has occurred, report totals are printed for the previously processed company/location.

a. The new Company Name and Location Name are retrieved from the Entity Name record (Reference File category 002). If the record is found, the program determines if the company/location base currency is a zero-decimal currency.

b. The current accounting period for the new company/location is retrieved from Reference File category 023, and the accounting period and date is retrieved from Reference File category 013.

c. If a cutoff date was passed to this program, the cutoff date is compared against the company/location's period end date. The lesser of the two is used in validating transactions to process..

If any of these Reference File category records are not found, a message is sent to the system operator and processing is terminated.

3. If a plant break has occurred, Workcenter file and Miscellaneous Cost Header file records are updated if the run type is a post run. The General Ledger location for the new plant is retrieved from the Warehouse Description file.

4. For a demand or final post, each MO to be processed is saved on IA recovery parameters (N26).

5. If the Manufacturing Order Status is closed, a determination is made whether the order is to be Inventory Accounting closed. (Subroutines PROMO and IACLS).

a. The Grace Period is added to the Manufacturing Close Date to obtain the Expiration Date.

b. If the Expiration Date is less than the Period End Date or the requested cutoff date (whichever is the lesser of the two), the order is to be Inventory Accounting closed.

6. The Manufacturing Order Header is processed. (Subroutine PROOH).

a. If the parent part is configuration costed the Configuration Code file (EC140M) is read to retrieve configuration cost information for the parent part. If the part is non-configuration costed the Part Master file (DE100M) is read to retrieve standard cost information of the parent part.

b. The Standard Cost Change of the parent part is calculated (Subroutine DSCP):

1) If the Previous Period Accounting Total Cost is not equal to the Accounting Total Cost,

Standard Cost Change	equals	Previous Period Received	times	Accounting Total Cost	minus	Previous Period Accounting Total Cost
Standard Material Cost Change	equals	Previous Period Received	times	Accounting Material Cost	minus	Previous Period Accounting Material Cost
Standard Labor Cost Change	equals	Previous Period Received	times	Accounting Labor Cost	minus	Previous Period Accounting Labor Cost
Standard Burden Cost Change	equals	Previous Period Received	times	Accounting Burden Cost	minus	Previous Period Accounting Burden Cost

The Standard Miscellaneous Cost Change is calculated as follows:

Previous Period Acctg Misc Cost	equals	Previous Period Variable Misc Cost	plus	Previous Period Fixed Misc Cost	divided by	Previous Period Average Ord Qty
Accounting Misc Cost	equals	Accounting Variable Misc Cost	plus	Accounting Fixed Misc Cost	divided by	Average Order Quantity
Standard Misc Cost Changes	equals	Previous Period Receipts	times	Accounting Misc Cost	minus	Previous Period Accounting Misc Cost

2) The sum of the material, labor, burden, and miscellaneous cost portions of the standard cost change is compared to the total standard cost change for the parent part. Any difference in the two figures is caused by rounding differences. The total standard cost change is booked to work in process (WIP). Therefore, the sum of the detail is forced to equal the total by adjusting the material figure.

c. If the Shop Floor Control application is installed, the Miscellaneous Standard Cost Change is calculated for operations whose leadtime equals zero. (Subroutine DSCMC). The lead time information is stored at the parent part; the miscellaneous cost information is stored on the Miscellaneous Cost Header file.

Previous Period
Acctg
Misc
Cost

equals

Previous Period Variable
Misc Cost

plus

Previous
Period Fixed Misc Cost

divided by

Previous Period Average Ord Qty

Accounting Misc Cost

equals

Accounting Variable
Misc Cost

plus

Accounting Fixed Misc
Cost

divided by

Average Order Quantity

If the Previous Period Accounting Miscellaneous Cost is not equal to the Accounting Miscellaneous Cost,

Misc
Standard
Cost
Changes

equals

Previous Period Receipts

times

Accounting
Misc Cost

minus

Previous Period Acctg Misc Cost

d. If the Shop Floor Control application is not installed, the Burden, Labor, and Miscellaneous Cost Standard Cost Changes are calculated as follows. (Subroutine DSCLB).

Labor Standard Cost Change	equals	Previous Period Receipts	times		Accounting Labor Cost	minus	Previous Period Labor Cost
Burden Standard Cost Change	equals	Previous Period Receipts	times		Accounting Burden Cost	minus	Previous Period Burden Cost
Misc Standard Cost Change	equals	Previous Period Receipts	times		Accounting Miscellaneous Cost	minus	Previous Period Misc Cost
Accounting Misc Cost	equals	Accounting Misc Material		plus	Accounting Misc Labor	plus	Accounting Misc Overhead

e. The parent scrap for this order is accumulated. (Subroutine PPARNT).

(1) The parent scrap workfile is cleared for the start of processing a new manufacturing order.

(2) The parent scrap transaction records are read from IA130AL4 until there are no more records for this manufacturing order.

(3) The transaction record is validated: if the Transaction Date is less than or equal to the Period End Date or cutoff date (whichever is less), the transaction is valid.

(4) The parent scrap is accumulated onto the workfile by operation. If a record for the transaction operation already exists, the record is updated with the transaction quantity. Otherwise, a new record is written to the workfile. If the transaction is a reversal, the quantity is negated.

(5) The material, labor, and burden cost fields on the parent scrap transaction record are initialized to zero and the record is updated.

f. The manufacturing order receipts audit trail records are processed. (Subroutine PMOATR).

(1) The audit trail records are read until there are no more records for this manufacturing order.

(2) The transaction record is validated: if the Transaction Date is less than or equal to the Period End Date or cutoff date (whichever is less), the transaction is valid. (Subroutine VMORTR).

(3) If the Reversal Code is R, the Quantity Received sign is reversed.

(4) The cost of This-Period Receipts is calculated as follows:

Cost of This Period Receipts	equals	Quantity Received This Period	times	Accounting Total Cost
(ACRECT (ACRECM (ACRECL (ACRECO (ACRECX	= = = = =	DCORDQ DCORDQ DCORDQ DCORDQ DCORDQ	* * * * *	PMASCT) PMASCM) PMASCL) PMASCO) PMASCX)

(5) If the Shop Floor Control application is installed, the following calculation is performed. (Subroutine PMRTRN)

Misc Cost

equals

Qty Rcvd

times

Acctg
Var
Misc Cost

plus

Acctg
Fix
Misc
Cost

divided by

Average Ord Qty

If Miscellaneous Cost is not equal to zero, journal entries are generated.

(6) If the Shop Floor Control application is not installed, the Labor, Burden and Miscellaneous Costs for non-configuration costed parts are calculated as follows. (Subroutine CLABU).

Labor Cost (CLABOR)	equals	Quantity Received (DCORDQ)	times	Accounting Labor Cost (PMASCL)
Burden Cost (CBURD)	equals	Quantity Received (DCORDQ)	times	Accounting Burden Cost (PMASCO)
Miscellaneous Cost (CMISC)	equals	Quantity Received (DCORDQ)	times	Acctg Misc Cost (MLMAM + MLMAL + MLMAO)

If the parts are configuration costed the Labor, Burden, and Miscellaneous Costs are calculated as follows.

Labor Cost (CLABOR)	equals	Quantity Received (DCORDQ)	times	Accounting Labor Cost (CCASCL)
Burden Cost (CBURD)	equals	Quantity Received (DCORDQ)	times	Accounting Burden Cost (CCASCO)
Miscellaneous Cost (CMISC)	equals	Quantity Received (DCORDQ)	times	Acctg Misc Cost (CCMAM + CCMAL + CCMAO)

If the calculated Labor, Burden, or Miscellaneous Costs are not equal to zero, corresponding journal entries are generated.

(7) The Cost of Parent Receipts to Date and Miscellaneous Cost to Date for non-configuration costed parts are calculated as follows:

Parent Receipts To Date (QRTDAT)

equals

Quantity Received This Period (QRTPR)

plus

Quantity Received Previous Period (HACREC)

The Cost of Parent Receipts to Date and Miscellaneous Cost to Date for configuration costed parts are calculated as follows:

Parent Receipts To Date (QRTDAT)

equals

Quantity Received This Period (QRTPR)

plus

Quantity Received Previous Period (HACREC)

(8) For a final or demand post, the audit trail record is flagged as processed by IA130E.

7. The component requirements for the manufacturing order are processed. (Subroutine PROCR).

a. The Component Requirements file (IC120M) is read until all components for the manufacturing order are processed.

b. If the component is configuration costed and the configuration code is not blank, the cost information is retrieved from the Configuration Code file (EC140M) for each component. If the component is non-configuration costed or the configuration code is blank, the cost information is retrieved from the Part Master file (DE100M) for each component.

c. The Standard Cost Change for each non-configuration costed component is calculated as follows. (Subroutine PCOMP).

SO stands for "scrap option."

The Standard Cost Change for each configuration costed component is calculated as follows.

SO stands for "scrap option."

If the component usage code is consumed (C), the calculated Standard Cost Change is added to the Total Standard Cost Change accumulator; otherwise, the calculated Standard Cost Change is subtracted from the Total Standard Cost Change accumulator for the order.

d. The component issue audit trails are processed. (Subroutine PCIAT).

(1) The Component Issues Audit Trail file (IA130AL2) is read until all records for the component requirement are processed.

(2) The transaction record is validated (Subroutine VCITR): if the Transaction Date is less than or equal to the Period End Date or cutoff date (whichever is less), the transaction is valid.

(3) If the Reversal Code is R, the quantity received sign is reversed.

(4) Component issues this period are accumulated.

(5) The cost of component issues this period is accumulated.

(6) For a demand or final post, the audit trail record is flagged as processed by IA130E.

e. The cost is calculated for components scrapped this period. (Subroutine FSRPAT).

(1) The component scrap accumulator (CSCRAP) is initialized to zero.

(2) The component scrap transaction records are read from IA130ML4 until there are no more records for the manufacturing order component.

(3) The transaction record is validated. If the transaction date is less than or equal to the period end date or cutoff date (whichever is less), the transaction is valid.

(4) The cost of the component scrap for non-configuration costed components is calculated as follows:

Material Scrap Cost

equals

Component Scrap Quantity (SCQTY)

times

Component Accounting Total Cost (PMASCT)

The cost of the component scrap for configuration costed components is calculated as follows:

Material Scrap Cost

equals

Component Scrap Quantity (SCQTY)

times

Component Accounting Total Cost (CCASCT)

(5) If the scrap option = 2, the component scrap quantity is accumulated. If the transaction is a reversal, the transaction is negated.

(6) The Scrap Transaction file (IA130AL5) is updated with the calculated material cost.

(7) The parent scrap transaction records are read from the Scrap Transaction file (IA130AL4) until there are no more records for the manufacturing order.

(8) The transaction record is validated. If the transaction date is less than or equal to the period end date or cutoff date (whichever is less), the transaction is valid.

(9) The material cost of the transaction is calculated as follows:

(10) If the scrap option = 2 or 3, the component scrap due to parent scrap is accumulated. If the transaction is a reversal, the sign of the transaction is reversed.

(11) The Scrap Transaction file (IA130AL5) is updated with the calculated material cost.

f. Actual component issues are processed, using the following calculations:

If sales option = 1:

Component Issues To
Date (CITDAT)

equals

Component Issues This Period (CITPR)

plus

Component Issues Previous Period (MZACIS)

minus

Last Period Scrap (MZAQS)

If sales option = 2 or 3:

Component Issues To
Date (CITDAT)

equals

Component Issues This Period (CITPR)

plus

Component Issues Previous Period (MZACIS)

Cost of Component Issues This Period (ACTPR1)

equals

Component Issues This Period (CITPR)

times

Accounting Total Cost (FMASCT)

If the component usage code is consumed (C), the calculated cost of component issues is added to the Cost of Component Issues accumulator; otherwise, the calculated cost of component issues is subtracted from the cost of Component Issues accumulator.

g. Planned component issues are calculated as follows:

Planned Component Issues (PLANCI)

equals

Parent Receipts To Date (QRTDT)

times

Component Requirements Quantity Per (MPQ)

Or if the component is configuration costed:

h. If the Run Option equals D or F (demand or final), the component requirements record is updated. (Subroutine UPCR).

(1) If the manufacturing order is to be Inventory Accounting closed, the Manufacturing Order Status is set to Z (accounting closed).

(2) If the scrap option = 2 or 3, This Period Scrap is added to the Previous Period Scrap.

(3) The Previous Period Issues is set equal to Component Issues to Date. If the scrap option = 2 or 3, the Previous Period Scrap is added.

8. The Labor Requirements for the Manufacturing Order are processed. (Subroutine PROLR).

a. The Labor Requirements file (IC125ML2) is read until all labor requirements for the manufacturing order are processed. If no labor requirements are found for the order, an exception message is generated.

b. If the labor requirements record is not a miscellaneous cost record (OPTYPE not equal blank), information is retrieved from the Workcenter file (ME100ML7), and the following calculations are performed. (Subroutine PLRREC).

(1) For all operations, the last period labor and machine hours that have not been scrapped or had variances reported against them are calculated as follows:

Last Period Labor Hours in WIP	equals	Previous Pd Labor Hours Recorded	minus	Previous Pd Labor Hours Scrapped	minus	Previous Pd Labor Hours Varianced
Last Period Machine Hours in WIP	equals	Previous Pd Mach Hrs Recorded	minus	Previous Pd Mach Hrs Scrapped	minus	Previous Pd Mach Hrs Varianced

Note that the previous period hours scrapped or varianced may be zero, depending on the options chosen.

(2) For all operations (Subroutine DSCCLR):

Labor Standard Cost Change	equals	Previous Period Labor Hours in WIP	times	Accounting Labor Rate	minus	Previous Period Accounting Labor Rate
Burden Standard Cost Change	equals	Previous Period Labor Hours in WIP	times	Accounting Labor Based Burden Rate	minus	Previous Period Accounting Labor Based Burden Rate

If the operation is machine paced:

Burden Standard
Cost
Change

equals

Previous Period Machine Hours

times

Accounting Machine
Based
Burden
Rate

minus

Previous Period Accounting Machine Based Burden Rate

(3) The this-level labor and overhead costs are calculated for the operation. (Subroutine CTLLO).

(a) For non-fixed time, labor-paced operations:

Labor Rate

equals

Scheduled Piece Rate

times

Number of Operators (if crew flag = Y)

Note: If the piece rate standard is pieces per hour, 1/(scheduled piece rate) is used.

Machine Rate

equals

Zero

(b) For non-fixed time, machine-paced operations:

Machine Rate	equals	Scheduled Piece Rate
Labor Rate	equals	Machine Rate	times	Crew Ratio

Labor Rate	equals	Fixed Time Labor Hours	times	Required Batches	divided by	Order Quantity
Machine Rate	equals	Fixed Time Machine Hours	times	Required Batches	divided by	Order Quantity

If the operation is machine paced:

Crew Ratio

equals

Fixed Time Labor Hours

divided by

Fixed Time Machine Hours

(d) The labor and machine rates calculated above are divided by the hourly cost and accumulated into the progressive labor and overhead cost fields.

(4) The cost of all scrap that occurred at the current operation is calculated. (Subroutine PPRTAT).

(a) Both the parent and component scrap transactions are read from the Scrap Transaction file (IA130AL5). Records are read until there are no more records for the operation.

(b) The transaction record is validated: if the Transaction Date is less than or equal to the Period End Date or cutoff date (whichever is less), the transaction is valid.

Labor Scrap Cost	equals	Parent Scrap Quantity	times	Progressive Labor Cost
Overhead Scrap Cost	equals	Parent Scrap Quantity	times	Progressive Overhead Cost.

(d) If the scrap option is 2 or 3, the parent scrap quantity and material cost are accumulated. For reversal transactions, the values are negated.

(e) In the post mode, the IA processed flag is set to Yes.

(f) The Scrap Transaction file is updated.

(g) After all transactions for the current operation have been processed, the labor and overhead cost of the cumulative scrap at this operation is calculated.

Scrap Labor Cost at Operation	equals	Total Parent Scrap at Operation	times	Progressive Labor Cost
Scrap Overhead Cost at Operation	equals	Total Parent Scrap at Operation	times	Progressive Overhead Cost

(h) The total scrap cost at this operation is calculated by adding the material, labor, and overhead costs. If this cost is non-zero, scrap expense journal entries are created.

(i) The scrap cost at this operation is accumulated into the total scrap cost for the order.

(5) If the scrap option = 2 or 3, the labor and overhead hours scrapped at the current operation are calculated.

(a) The accumulators are initialized to zero.

(b) The parent scrap workfile (IA130CP1) is read, starting at the current operation and continuing until there are no more records for this order.

(d) If the transaction operation is the same as the operation currently being processed, the scrap quantity is also accumulated into the total scrap at this operation.

(e) After all records are processed, the scrap quantity accumulators are multiplied by the labor and machine rates to calculate both the total hours scrapped at this operation and the total hours scrapped at this operation because of parent scrap.

Steps (6) through (10) are performed only if the variance option = 1.

(6) If the variance option = 1 and the manufacturing order is to be Inventory Accounting closed, the following calculations are performed. (Subroutine PLRTOT).

Labor Hours This Period	equals	Labor Hours	minus	Labor Hours Previous Period
Machine Hours This Period	equals	Machine Hours	minus	Machine Hours Previous Period

(7) If the variance option = 1, the following processing occurs. (Subroutine PLRAT).

(a) The Labor Requirements Audit Trail file (IA130AL1) is read until all audit trail records for the labor requirements record are processed.

(b) The transaction is validated: If the operation is labor paced and the transaction is a labor hours transaction (L60) and the Transaction Date is less than or equal to the Period End Date or cutoff date (whichever is less), the transaction is valid.

(d) Machine Hours This Period and Labor Hours This Period are accumulated.

(e) Labor Cost This Period and Burden Cost This Period are accumulated.

(f) For a demand or final post, the audit trail record is flagged as processed.

(8) If the variance option = 1, the Labor Hours to Date are calculated as follows. (Subroutine PACLBH).

Labor Hours
To Date

equals

Labor Hours This Period

plus

Labor Hours Previous Period

(9) If the variance option = 1 and the operation is labor paced, the following calculations are performed. (Subroutine PACLBH).

Labor Cost To Date	equals	Labor Hours To Date	times	Accounting Labor Rate
Burden Cost To Date	equals	Labor Hours To Date	times	Accounting Labor Based Burden Rate

(10) If the variance option = 1 and the operation is machine paced, the following calculations are performed. (Subroutine PACMH).

Labor Cost To Date (for machine-paced workcenter)

equals

Labor Hours To Date

times

Accounting Labor Rate

If operation is a master operation:

Labor Cost To Date

equals

Labor Hours To Date

times

Accounting Labor Rate

Machine
Hours To
Date

equals

Machine Hours This Period

plus

Machine Hours Previous Period

If operation is not a master operation:

Crew
Ratio
Cost

equals

Machine Hours To Date

times

Crew
Ratio

times

Accounting Labor Rate

Steps (11) through (14) are performed only if the variance option = 2.

(11) If the variance option = 2, the following processing occurs:

(a) The Labor Requirements Audit Trail file (IA130AL6) is read until all audit trail records for the labor requirements record are processed.

(b) The transaction is validated: if the Transaction Date is less than or equal to the Period End Date or cutoff date (whichever is less), the transaction is valid.

(d) Machine Hours This Period, Labor Hours This Period, and Quantity Complete This Period are accumulated.

(e) Labor Cost This Period and Burden Cost This Period are accumulated.

(f) For a demand or final post, the audit trail record is flagged as processed.

(12) Hours earned this period are calculated, using the previously calculated labor and machine rates for the operation.

Labor Hours Earned	equals	Quantity Complete	times	Labor Rate
Machine Hours Earned	equals	Quantity Complete	times	Machine Rate

For master operations, the earned hours are set to zero. Calculation of efficiency variances requires that recording be done at the operation level.

(13) Efficiency variances are calculated.

(a) Varianced hours are calculated.

Labor Hours Varianced	equals	Labor Hours This Period	minus	Labor Hrs Scrapped at this op because of scrap reported at this operation	minus	Labor Hours Earned
Machine Hours Varianced	equals	Machine Hours This Period	minus	Mach Hrs Scrapped at this op because of scrap reported at this operation	minus	Machine Hours Earned

(b) For machine-paced operations:

Labor Efficiency (LABEFF)

equals

Machine Hours Varianced

times

Crew Ratio

times

Accounting Labor Rate

Overhead Efficiency (BUREFF)

equals

Labor Hours Varianced

times

Accounting Labor-Based OH Rate

plus

Machine Hours Varianced

times

Accounting Machine-Based OH Rate

Labor Efficiency(LABEFF)	equals	Labor Hours Varianced	times	Accounting Labor Rate
Overhead Efficiency (BUREFF)	equals	Labor Hours Varianced	times	Accounting Labor-Based Overhead Rate

If the efficiency variances are non-zero, journal entries are created. In addition, records are written to the Efficiency Variance Workfile (IA130CP2).

(14) If the Run Type parameter (REQOPT) equals D (demand) or F (final), the following processing occurs. (Subroutine UPLR).

(a) If the manufacturing order is to be Inventory Accounting closed, the Labor Requirements Status is set to Z (accounting closed).

(b) The Previous Period Labor Hours Reported and the Previous Period Machine Hours Reported fields are updated with current activity.

(d) If the variance option is equal to 2, the Total Labor Hours Varianced and Total machine Hours Varianced are updated.

(e) The labor requirements record is updated.

c. If the labor requirements record is a miscellaneous cost record (OPTYPE = blank), the following processing is performed. (Subroutine LRMC)

(1) Cost information is retrieved from the Miscellaneous Cost Header file (ME160M1).

(2) The Cost Type is determined from the Rate Code:

If Rate Code is:	Then Cost Type is:
L	variable
M	variable
O	variable
X	fixed
Y	fixed
Z	fixed
C	memo

(3) If the Cost Type is variable, the following calculation is performed:

Miscellaneous Standard Cost Change

equals

Quantity Complete Previous Period

times

Accounting Misc. Cost

minus

Miscellaneous Cost Previous Period

(4) If the Cost Type is fixed, the following calculation is performed:

Miscellaneous Standard Cost Change	equals	Quantity Complete Previous Period	times	Accounting Misc. Cost	divided by	Average Order Quantity
			minus	Misc Cost Previous Period	divided by	Average Order Quantity Previous Period

(5) If the manufacturing order is not to be Inventory Accounting closed, the following processing is performed:

(a) The Shop Floor Direct Transactions Audit Trail file (IA130AL1) is read until all audit trail records for the miscellaneous cost labor requirements record are processed.

(b) The transaction is validated: If the transaction is a quantity complete transaction (L10) or range of rework transaction (L85) and the Transaction Date is less than or equal to the Period End Date or cutoff date (whichever is less), it is valid. If the Reversal Code is R, and an L10 transaction the sign of the quantity complete is reversed. If the Reversal Code is blank and an L85 transaction, the sign of the quantity complete is reversed.

(d) Miscellaneous Cost This Period is accumulated.

(e) For a demand or final post, the audit trail record is flagged as processed.

(6) The Quantity Complete is processed with the following calculation:

Quantity Complete To Date

equals

Quantity Complete This Period

plus

Quantity Complete Previous Period

(7) If the Cost Type is variable, the following calculations are performed:

Miscellaneous Cost To Date

equals

Quantity Complete To Date

times

Accounting Miscellaneous Cost

(8) If the Cost Type is fixed, the following calculations are performed:

Misc
Cost To
Date

equals

Quantity Complete To Date

times

Accounting
Misc Cost

divided by

Average Order Quantity

(9) If the Rate Code is C (memo), no costs are calculated.

(10) If the manufacturing order is to be Inventory Accounting closed, the Cost Type is fixed, and the Quantity Complete is not equal to the Average Order Quantity, the following calculation is performed:

Fixed Misc Cost Var

equals

Average Order Quantity

minus

Total Quantity Complete

times

Fixed Misc. Cost

divided by

Average Order Quantity

(11) If the Run Type parameter (REQOPT) is D (demand) or F (final) , the following processing is performed:

(a) The Labor Requirements Status is set to Z (accounting closed).

(b) The Previous Period Quantity Complete is set equal to the Quantity Complete to Date.

9. The Manufacturing Order Standard Cost Changes are processed. (Subroutines PRMOWP and PMDSCC).

Manu-
facturing
Order Standard Cost Change

equals

Receipts Standard Cost Change of Parent Part

plus

Material Standard Cost Change of Each Component

plus

Labor Standard Cost Change

plus

Burden Standard Cost Change

plus

Misc Standard Cost Change

10. If the accounting code of the parent part has changed, journal entries are created to move the open order balance from one WIP account to another. (Subroutine ACDEJE)

If the Manufacturing Order Standard Cost Change is not equal to zero, manufacturing order standard cost change journal entries are generated.

Retrieve the WIP account from Reference File category 451 using the saved WIP accounting code. Compare the current WIP account to the saved WIP account.

11. If the manufacturing order is to be Inventory Accounting closed, variances are calculated as follows. (Subroutine CVAR). Please note that if the scrap processing is equal to 2 or 3, the Component Issues to Date and the Cost of Component Issues to Date has already been adjusted by the quantity and cost of scrap. Also, if the variance option is equal to 2, the labor and burden costs to date include labor and machine hours varianced or scrapped.

a. The Total Material Usage Variance is calculated. (Subroutine CMVR)

Total Material Usage Variance	equals	Beginning Material Balance	plus	Components Issues This Period
	minus	Material Value of Parent Receipts	plus	Standard Cost Change of Components
	plus	Change in Material Standard of Parent	plus	Material Scrap Value

If the above variance is not equal to zero, material usage journal entries are generated.

b. The Material Performance Variance is calculated. (Subroutine CMVR)

Material Performance Variance

equals

Cost of Component to Date

minus

Planned Cost of Component Issues to Date

c. The Material Engineering Variance is calculated. (Subroutine CMVR)

Material Engineering Variance

equals

Material
Usage Variance

minus

Material Performance Variance

d. If the Shop Floor Control application is installed, the following variances are calculated.

(1) The Total Labor Variance is calculated. (Subroutine CLVR).

Total Labor Variance	equals	Beginning Labor Balance	plus	Labor Cost This Period	minus	Labor Value of Parent Receipts	plus	Standard Cost Change of Labor
	plus	Change in Labor Standard of Parent	plus	Labor Scrap Value	plus	As-Incurred Labor Variances

(2) The Manning Order Closure Variance is calculated if the variance option = 1. (Subroutine CMNVR).

Manning Closure Variance

equals

Crew Ratio Cost

minus

Machine Labor Cost To Date

If the Manning Closure Variance is not equal to zero, manning variance journal entries are generated.

(3) The Labor Order Closure Variance is calculated as the Total Labor Variance less Manning Closure Variance.

(4) The Overhead (Burden) Order Closure Variance is calculated. (Subroutine CBRVR).

Burden Order Closure Variance	equals	Beginning Burden Balance	plus	Burden Cost This Period	minus	Burden Value of Parent Receipts	plus	Standard Cost Change of Burden
	plus	Change in Burden Standard of Parent	plus	Burden Scrap Value	plus	As-Incurred Burden Variances

If the Overhead Closure Variance is not equal to zero, overhead variance journal entries are generated.

(5) The Miscellaneous Cost Variance is calculated. (Subroutine LMSCVR).

Fixed Misc Cost Variance

equals

Acctg Fixed, Lead Time Misc Cost

divided by

Average Order Quantity

times

MO
Receipts

minus

Average Order Quantity

Misc Cost Variance	equals	Beginning Misc Balance	plus	Misc Cost This Period	minus	Misc Value of Parent Receipts	plus	Standard Cost Change of Misc Cost
	plus	Change in Misc Standard of Parent

If the Miscellaneous Cost Variance is not equal to zero, miscellaneous cost variance journal entries are generated.

12. The manufacturing order update is processed. (Subroutine MOCALC).

a. The Work-in Process Balance equals the sum of Standard Cost Changes, This Period Transactions (including scrap and efficiency variances), and the old Work-in-Process Balance. The components of the Work-in-Process Balance (material, labor, burden, and miscellaneous) are calculated in the same fashion.

b. If the manufacturing order is to be Inventory Accounting closed, the calculated variances are added to the new Work-in-Process Balance, the material variance is added to the new Material Work-in-Process Balance, the labor variance is added to the new Labor Work-in-Process Balance, the burden variance is added to the new Burden Work-in-Process Balance and the miscellaneous variance is added to the new Miscellaneous Work-in-Process Balance.

c. If the Work-in-Process Balance has been changed, and the manufacturing order is to be Inventory Accounting Closed, the Work-in-Process Total Balance field is changed. The Work-in-Process Material, Labor, Burden, and Miscellaneous Balance fields are also changed.

d. For a demand or final post, if the manufacturing order is to be Inventory Accounting closed, the Manufacturing Order field is changed to Z (accounting closed).

e. If any changes have been made to the manufacturing order header, the record is updated.

13. The Work-in-Process Summary report (IA130A) is printed as follows. (Subroutine PWIPSM).

a. Final manufacturing plant totals are accumulated.

b. The report for the current order is printed.

c. All fields are initialized for the next order.

14. When the end of the Manufacturing Order file (IC100L14) has been reached and all manufacturing orders have been processed (steps 1 through 9 above), the final manufacturing order plant totals are printed.

15. For a demand or final post:

a. The IA period end parameters (category 460) is retrieved. The program name on this category is updated with blanks to indicate successful processing.

b. The IA recovery parameters (category N26) is retrieved and updated with blanks.

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Manufacturing Order Journal Entry Creation - Calculations

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