Labor Transactions

Use the labor transaction to record the hours expended for a specific step on a work order. Hours can be entered for individual production employees or for a labor crew. When labor transactions are entered, you can also specify the quantity of pieces or assemblies processed using a particular operation during the specified time period and whether or not the operation is completed. Labor can be entered in terms of man-hours or machine time.

Labor costs are calculated based on the rate per hour established for the operation code. If the Charge Labor at Employee Rate check box is selected in the Work Center Maintenance window, the standard rate for the employee established in Production Employee Maintenance is used instead. During the Work Order Transaction Journal update, general ledger postings to the appropriate Work-in-Process Direct and Applied Direct accounts are generated.

There is no direct integration between Work Order and the Payroll module; however, the Labor Summary Report provides a recap by employee number of the labor hours recorded in Work Order Transaction Entry. This report can be used as a source document for Payroll Data Entry in the Payroll module.

If Labor is selected in the Type field in the Work Order Transaction Entry window, the Employee/Crew No. field appears on the Work Order Transaction Entry Header tab. After labor transactions are updated, the number of hours reserved for a work center for work center capacity calculations are based on the planned number of hours subtracted from the number of hours recorded. If a step has been completed, no hours are reserved at the work center.

The percentage of the step completed is calculated. This is calculated by the actual hours divided by the standard hours for each step. If the step is "flagged" as completed, the percentage is 100. If the actual hours are greater than the planned hours, the percentage is also 100.

Note If you process work orders and do not post any labor transactions, or if you have a step that contains only material, miscellaneous labor or material, or outside processing costs only, the percent complete is never updated for that step.

For more information, see:

Work Order Transaction Entry

Labor Crew Transactions

Issue Methods

Account Maintenance