Cost for Shop Order Labor Reports

The cost for labor time reported against a shop order operation can be fetched from different sources depending on the system configuration. The cost for labor setup and runtime is based on the reported man hours and setup man hours. More details about the calculation of man hours can be found in About Shop Floor Reporting

Labor Rate

To determine the hourly rate for a labor report the system uses the below logic:

1. If the labor time is not reported against a specific Employee ID the labor rate is fetched from the Labor Class Rate field in the Manufacturing Labor Class/Cost for the labor class to which the operation is connected.
2. If the labor time is reported against a specific Employee ID and the Override Employee Cost check box in Site/Extended Site Info/Manufacturing tab is selected, the labor rate is fetched from the Labor Class Rate field in the Manufacturing Labor Class/Cost for the labor class to which the operation is connected.
3. If the labor time is reported against a specific Employee ID, the Override Employee Cost check box in Site/Extended Site Info/Manufacturing tab is not selected, and the employee is not defined in IFS/Human Resources, the labor rate is fetched from the Labor Class Rate field in the Manufacturing Labor Class/Cost for the primary site and labor class to which the employee is connected.
4. If the labor time is reported against a specific Employee ID, the Override Employee Cost check box in Site/Extended Site Info/Manufacturing tab is not selected, the employee is defined in IFS/Human Resources and the Use Employee Labor Cost check box in Company Details window is selected, the labor rate is fetched from the Hourly Rate column in Employee/Compensation/Salary window.
5. If the labor time is reported against a specific Employee ID, the Override Employee Cost check box in Site/Extended Site Info/Manufacturing tab is not selected, the employee is defined in IFS/Human Resources and the Use Employee Labor Cost check box in Company Details window is not selected, the labor rate is fetched from the Standard Cost column in Standard Costs window.

Labor Overhead

To determine the overhead rate for a labor report the system uses the below logic:

1. If the labor time is not reported against a specific Employee ID the labor overhead is fetched from the Overhead field in the Manufacturing Labor Class/Cost for the labor class to which the operation is connected.
2. If the labor time is reported against a specific Employee ID and the Override Employee Cost check box in Site/Extended Site Info/Manufacturing tab is selected, the labor rate is fetched from the Overhead field in the Manufacturing Labor Class/Cost for the labor class to which the operation is connected.
3. If the labor time is reported against a specific Employee ID, the Override Employee Cost check box in Site/Extended Site Info/Manufacturing tab is not selected and the Cost Valuation Method list in the Inventory Part window for the manufactured part is set to Standard Cost, the overhead rate will be fetched from the Overhead field in the Manufacturing Labor Class/Cost for the primary site and labor class to which the employee is connected.
4. If the labor time is reported against a specific Employee ID, the Override Employee Cost check box in Site/Extended Site Info/Manufacturing tab is not selected and the Cost Valuation Method list in the Inventory Part window for the manufactured part is not set to Standard Cost, the overhead rate will be fetched from the Overhead Rate field in the Cost Details Basic Data window.

   To define an overhead rate for a cost source; first create a cost source in the upper section and specify the desired overhead rate in the lower section of the Cost Details Basic Data/Cost Source tab, then select a Cost Source Indicator for Shop Order - Employee Labor Overhead in the Cost Source Indicator Definition tab, then connect the selected cost source indicator to the cost source in the Cost Source Indicators tab.