Activity Code Maintenance

Enter the name or the person, department or group responsible for the activity.

Select an activity classification.

Enter the standard cost per hour for the activity code. The standard cost per hour is used to calculate budget labor cost by multiplying step budget labor hours by the value assigned in the Standard Cost/Hour field.

The calculated fixed and variable overhead cost is then added to the budget labor cost to calculate total budget labor cost. This is referred to as activity-based costing.

If the Cost Labor at Standard check box in Work Ticket Class Maintenance is selected for the work ticket class assigned to a work ticket, the amount in the Standard Cost/Hour field is used to calculate actual labor cost, instead of the employee's pay rate, for labor transactions created in Labor Entry.

The Standard Cost/Hour is used to calculate the actual labor cost for labor transactions created in Work Ticket Transaction Entry regardless of whether the Cost Labor at Standard check box in Work Ticket Class Maintenance is selected.

TIP: Assign a standard cost-per-hour rate for each activity code to calculate budget labor costs for work ticket steps.

Enter the default department number for the activity, or click the Lookup button to list all department numbers.

This department number is used:

• As the default entry in the Department Worked In field in Labor Entry.
• For labor transactions created in Work Ticket Transaction Entry and posted by the Work Ticket Transaction Journal/Update.

Where department numbers are maintained:

• If Yes is selected in the (Integrate with) Payroll field in Production Management Options, department numbers are maintained in the Department Maintenance task in the Payroll module.
• If No or Employees Only is selected in the Integrate with Payroll field in Production Management Options, department numbers are maintained in the Department Maintenance task in the Production Management module.

Enter a default earnings code for the activity, or click the Lookup button to list all earnings codes.

If the Cost Labor at Standard check box is not selected in Work Ticket Class Maintenance, labor can be recorded on a work ticket at different employee pay rates by assigning an earnings code in Labor Entry.

If Yes is selected in the (Integrate with) Payroll field in Production Management Options, the earnings code assigned to the labor entry is used to calculate payroll transactions in Payroll Data Entry by the Periodic Labor Register/Update.

Where earnings codes are maintained:

• If Yes is selected in the (Integrate with) Payroll field in Production Management Options, earnings codes are created and maintained in the Earnings Code Maintenance task in the Payroll module.
• If No or Employees Only is selected in the (Integrate with) Payroll field in Production Management Options, earnings codes are created and maintained in the Earnings Code Maintenance task in the Production Management module.

Enter the materials scrap account to post scrap from Work Ticket Entry and Work Ticket Transaction Entry. Click the Lookup button to view a list of general ledger accounts.

Select a variable overhead type. Variable overhead can be defined for each activity code and is included in step budget and actual labor cost values.

Variable overhead parameters are used to calculate:

• Variable overhead budget costs for budget labor hours if an activity code is assigned to a step in Work Ticket Entry.
• Variable overhead actual cost for labor transactions created in Labor Entry.
• Variable overhead actual cost for labor transactions created in Work Ticket Transaction Entry and updated by the Work Ticket Transaction Journal/Update.

If Percent is selected in the Variable Overhead Type field, enter the percentage rate to apply to labor transactions and the labor portion of a step’s calculated budget cost.

• If the Cost Labor at Standard check box in Work Ticket Class Maintenance is selected (activity based costing), variable overhead cost is calculated as a percentage of the activity code's standard cost per hour.

  Variable overhead cost is also calculated as a percentage of the activity code's standard cost per hour for labor transactions created in Work Ticket Transaction Entry and updated by the Work Ticket Transaction Journal/Update.

• If the Cost Labor at Standard check box in Work Ticket Class Maintenance is not selected, variable overhead cost is calculated as a percentage of the employee's hourly pay rate and the earnings code assigned to the labor transaction created in Labor Entry.

If Amount is selected in the Variable Overhead Type field, enter the unit amount to apply to labor transactions and the labor portion of a step’s calculated budget cost.

Select a fixed overhead type. Fixed overhead can be defined for each activity code and is included in step budget and actual labor cost amounts.

Fixed overhead parameters are used to calculate:

• Fixed overhead budget cost for budget labor hours if an activity code is assigned to a step in Work Ticket Entry.
• Fixed overhead actual cost for labor transactions created in Labor Entry.
• Fixed overhead actual cost for labor transactions created in Work Ticket Transaction Entry and updated by the Work Ticket Transaction Journal/Update.

If Percent is selected in the Fixed Overhead Type field, enter the percentage rate to apply to labor transactions and the labor portion of a step’s calculated budget cost.

• If the Cost Labor at Standard check box in Work Ticket Class Maintenance is selected (activity based costing), fixed overhead cost is calculated as a percentage of the activity code's standard cost per hour.

  Fixed overhead cost is also calculated as a percentage of the activity code's standard cost per hour for labor transactions created in Work Ticket Transaction Entry and updated by the Work Ticket Transaction Journal/Update.

• If the Cost Labor at Standard check box in Work Ticket Class Maintenance is not selected, fixed overhead cost is calculated as a percentage of the employee's hourly pay rate and the earnings code assigned to the labor transaction created in Labor Entry.

If Amount is selected in the Fixed Overhead Type field, enter the unit amount to apply to labor transactions and the labor portion of a step’s calculated budget cost.