WIP should charge the resosorce on the basis of Time taken to complete job
Hi,
I would like to know how:
WIP should charge the resosorce on the basis of Time taken to complete a job.
the facility what we have in WIP is to change the unit of resource and then the costing will take place.
I will clarify with the help of an example.
Let a job requires 1 hour to complete but it has taken 1 1/2 (90 minutes) hours to complete. the WIP value summary shows the Cost based upon the standard hours required and not on the actual hours taken to complete the job.
Please provide suggestions
Regards
S
Sounds like you are autocharging labor but you don't want to. The only way to do what you want is to use a charge type of manual on the resource. This can cause other issues so make sure you test fully. For example in an average cost environment the manual resource transaction must occur before the completion transaction or the cost goes to variance.
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