Hi James,
I guess you're referencing [1].
The three types of cost are calculated cost based on projections (budgets,
utilisation estimates, etc.) done at the beginning of a period, and are
used to determine the total estimated (or budgetary, but also the
'calculated' ) cost of a production run. When factoring spillage (or waste)
this yields a calculated cost per unit produced in the production run.This
is not actual cost!
In a nutshell, the actual cost of an executed (and completed) production
run is based on:
- actual material (components/ingredients spent on each of the tasks) +
- actual time spent by all directly allocatable persons (internal,
external) * actual time rate +
- actual utilisation of production equipment * utilisation fee/price +
- directly allocatable overhead (optional, depending on what kind of
costing schema is applied/used within the organisation [2])
Thus on [1] and the related CostComponentCalc entity [3] the
- fixedCost field is for the amount that is to be applied (through the
costCustomMethod) to whole task
- variableCost field is for the amount that is to be applied for every
unit produced in the tasks (also with factoring in a costCustomMethod)
- perMilliSecond field is for the amount that is to be applied for every
milisecond of the task (based on endDate/time -/- startDateTime), and again
factoring in a costCustomMethod.
As you can realise none of the above is suitable to determine the actual
labor cost of a task, but quite suitable to determine the 'calculated'
cost. These cost are then (administratively) set against the actuals.
Regarding the cost of labor on a task: the actuals are done via accounting
(through payroll calculations/invoicing from sub-contractors), and the
calculated cost can be derived through time registration * rate.
I trust the above helps.
[1]
https://demo-trunk.ofbiz.apache.org/accounting/control/EditCostCalcs[2] Activity Based Costing vs Process Costing vs Traditional Costing
Best regards,
Pierre Smits
*Apache Trafodion <
https://trafodion.apache.org>, Vice President*
*Apache Directory <
https://directory.apache.org>, PMC Member*
Apache Incubator <
https://incubator.apache.org>, committer
*Apache OFBiz <
https://ofbiz.apache.org>, contributor (without privileges)
since 2008*
Apache Steve <
https://steve.apache.org>, committer
On Fri, Nov 30, 2018 at 7:10 PM <
[hidden email]> wrote:
>
> When calculating labor costs in a production run it is my understanding
> that the system will use the Costs from the Routing Tasks. That costs
> is set up in the accounting manager either as a Fixed Costs, Variable
> Costs, or Per Millisecond costs.
>
> If you would the system to calculate the Actual Labor costs which one of
> the 3 areas above will it use for calculation? When declaring actual
> time spent on a routing tasks what is the unit of measure? Is is
> milliseconds, seconds, or minutes. Am I correct in assuming that it
> will take the actual set up time & actual production time multiply it by
> the cost component from the tasks and divide by the quantity produced?
>
> Thanks,
>
> James
>
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