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Operations Menu - Production Operation - Add Labour

This page describes the 'Add Labour' function on the Operations menu in the Production Operation record window. If you are using iOS or Android, the 'Add Labour' function is on the Tools menu (with 'wrench' icon).

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You will usually need to use the 'Add Labour' function if you have used the Time options in the Production Settings setting to choose that you will record Actual Time against Production Operations. In this case, you will use the ''Workflow Activity' function to create Activities that will record the time spent working on the Production Operation. You should then use this function to bring the time represented by those Activities into the Production Operation. When you select this function, an extra row will be added to the Production Operation. This row will contain the Labour Cost Item specified in the Production Settings setting. The In Qty of this row (number of hours) will be the total Cost (Time) of the Activities, and the Unit Cost will be the Work Cost per Hour (also specified in the Production Settings setting) if the Labour Cost Item is a Service Item in which the Cost Price is blank (if that Item has a Cost Price, that Cost Price will be the hourly rate).

If you add more Activities after running the 'Add Labour' function, run it again to have the new Activities added to the Production Operation. The In Qty in the existing row with the Labour Cost Item will be increased appropriately.

When you mark the Production Operation as Finished and save, the value of this row (In Qty x Unit Cost) will be credited to a Work Cost Account. The choice of this Account(s) that will be credited with these running costs will depend on whether you are using the Use Item Groups for Cost Accounts option in the Cost Accounting setting in the Stock module. If you are, and the Labour Cost Item belongs to an Item Group in which you have specified a Production Work Cost Account, this Accounts will be used. If you are not using this option or the Item Group does not have a Production Work Cost Account, the Production Work Cost Account will be taken from the Account Usage Stock setting.

If you are recording Fixed Time against Production Operations, you will usually not need to use this function. But you can still use it together with the 'Workflow Activity' function as described if you need to add an extra cost to a particular Production Operation. The result will be two rows with the Labour Cost Item in the Production Operation: one with the fixed cost (added automatically when the Production Operation was created) and one with the extra cost (added by the 'Add Labour' function).

If you use the 'Add Labour' function and no extra row is added to the Production Operation, the probable causes are:

1. You have not specified a Labour Cost Item in the Production Settings setting.
   

2. You have not created any Activities from the Production Operation, or the Activities that you have created have not been marked as Done.
   

3. The Status of the Production Operation is not Created or Started.

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The Production Operation register in Standard ERP:

• Introduction
  

• Entering a Production Operation
  

• Inspecting and Finishing Production Operations
  

• Nominal Ledger Transactions from Production Operations
  

• Operations menu, including:
  
  • Add Labour
    

  • Generate Serial No. for Out Items
    

  • Open NL Transaction
  
  
• Create menu
  

• Row menu

See also:

• Assembly in Stages
  

• Additional Production Costs with Production Operations
  

• Sub-Assemblies with Production Operations (Phantom Items)

• Materials, Standard Operations and Routings settings

Go back to:

• Home page for Production manual
  

• Home page for Standard ERP manual

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