Shop Floor Journal Entry Creation - Calculations

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 system time is saved for printing on reports.

6.   The Run Type parameter (REQOPT) is identified as trial or post and the Post Flag and Report Type fields are initialized accordingly.

7.   The following information is retrieved from the Reference File category (REFERP).

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

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.   The current accounting period is retrieved from Reference File category 023.

8.   A priming read is performed on the Shop Floor Audit Trail file (IA120AL) and the Workcenter and Manufacturing Order Numbers are saved.  If no records are found on the file, an error message is printed on each of the three detail reports -- the Direct Labor Summary Worksheet (IA120A), the Burden Summary Worksheet (IA120B), and the Miscellaneous Cost Summary Worksheet (IA120C) -- and processing terminates.

B.   Mainline

1.   The Shop Floor Audit Trail file (IA120AL) is read sequentially to obtain all transactions with a date within the Accounting Period Close Date or requested cutoff date (whichever is lesser of the 2) which have not yet been processed by Inventory Accounting (IAFLG = blank).

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 ending period for the company/location is retrieved from Reference File category 013.  The WIP account is retrieve from Reference File category 451 using the saved WIP accounting code.

3.   For each transaction, the workcenter's Machine/Labor-Paced Flag (WCMLPF), Accounting Machine-Based Rate (WAMCOH), Accounting Labor-Based Rate (WALBOH), and Accounting Labor Rate (WARATE) are retrieved from the Workcenter file (ME100M).  The miscellaneous cost rate (MHMSCA) and rate code (MHRCA) are retrieved from the Miscellaneous Cost Header file (ME160M1).  If any of the rates is equal to zero, an error message is printed on the Shop Floor Journal Entry Creation Error report (IA120D).

4.   For each transaction, the labor, overhead and miscellaneous costs are calculated as follows:

For labor-paced workcenters:

For machine-paced workcenters:

or

5.   For each transaction, debit and credit entries are generated on the Shop Floor Journal Entry file (IA120AP) as follows:

a.   Direct Labor Hour Workcenter

(1)  Labor-Paced Workcenter

·     Direct Labor Hours Cost

¾   Debit Work-in-Process (WIP) Account

¾   Credit Accrued Labor Costs (Payroll) Account

·     Overhead Cost

¾   Debit Work-in-Process Account

¾   Credit Accrued Overhead Cost (Burden) Account

(2)  Machine-Paced Workcenter

·     Direct Labor Hours Cost

¾   Debit Work-in-Process Account

¾   Credit Accrued Labor Costs Account

b.   Direct Machine Hours Transaction

(1)  Labor-Paced Workcenter

·     No contribution to cost; no journal entry created

(2)  Machine-Paced Workcenter

·     Overhead Cost

¾   Debit Work-in-Process Account

¾   Credit Accrued Overhead Cost Account

c.   Quantity Complete Transaction - Miscellaneous Cost Workcenter

¾   Debit Work-in-Process Account

¾   Credit Accrued Miscellaneous Cost Account

6.   For each transaction, totals are accumulated for each rate code within a company/location and for each workcenter within the company/location for labor costs, burden costs, and miscellaneous costs.  When a break occurs in rate code, order number, or workcenter number, a detail line is printed on one or two of the summary worksheets as follows:

a.   Direct Labor Hour Transaction

(1)  Labor-Paced Workcenter

¾   Detail line on Direct Labor Summary Worksheet (IA120A)

¾   Detail line on Burden Summary Worksheet (IA120B)

(2)  Machine-Paced Workcenter

¾   Detail line on Direct Labor Summary Worksheet (IA120A)

b.   Direct Machine Hours Transaction

(1)  Labor-Paced Workcenter

¾   No report detail generated

(2)  Machine-Paced Workcenter

¾   Detail line on Burden Summary Worksheet (IA120B)

c.   Quantity Complete Transaction - Miscellaneous Cost Workcenter

¾   Detail line on Miscellaneous Cost Worksheet (IA120C)

7.   If this is a post run, each processed transaction record on the Shop Floor Audit Trail file (IA120AL) is updated as having been processed by Inventory Accounting (IAFLG =  YES).  The period and year posted are also updated on the audit trail files.

8.   When all transactions have been processed, the totals for the company/location and the totals for the rate codes are printed on the reports.

9.   For a demand or final post, the IA period end parameters (category 460) is retrieved.  The program name on the category is updated with blanks to indicate successful processing of this program.

IA120E Program Menu

• Purpose
• Calculations
• Files
• Parameters
• Reports