Production Down Time costs.

Hi all,
1.How to record Production order down time when a workcenter is down.  The reason for this is to find out how much time the production order is delayed because of  machinary problem. does that cost should go to Production Order or to Cost Center. If Cost center how to post the cost directly to Cost Center.
Thanks
Sivaram

Hi,
When a workcenter is down, the cost center must already be accruing the expenses involved. For instance, let us say a work center is down for a day. For that day, the labor, utilities expenses etc.. involved must already be getting collected in the cost center, to which the work center is assigned.
Alternatively, if you want to allocate those costs to the production order, you should book the entire activities (say actual labor time) consumed, i.e say if the downtime is one day book the entire 24 hrs to the order.  The activities in turn would post OH to the order, if OHs are calculated based on activities.
But in many cases the  downtime may not have been caused by the prodn. order. It is the cost center which would have been responsible for the downtime.. So, the option of leaving the costs to remain the cost center is better. The additional costs incurred will show up in the cost center as variances.
Hope this helps.

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