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Evo-ERP and DBA Classic >> Manufacturing >> Variable Overhead Transactions
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Message started by kevind on 02/19/07 at 14:39:33

Title: Variable Overhead Transactions
Post by kevind on 02/19/07 at 14:39:33

We are not using the Variable overhead field in work centers.
We do use Shop floor data collection.

I just noticed today that there were several transactions in the GL Batch to the
Variable Overhead GL account. I double checked all the work centers, and confirmed
that they all have the Variable overhead field set to $0.00.

I ran JC-D for today, and the Variable Overhead column totals $0.00.

The labor total and Fixed Overhead total from JC-D match up exactly with
the Batch. The Variable Overhead on JC-D = 0, but the Batch shows Debits of $0.07 and Credits of $0.04.

What would cause the GL Batch totals to differ from JC-D?

Title: Re: Variable Overhead Transactions
Post by Lynn_Pantic on 02/19/07 at 16:06:10

The labor hours multiplied by the hourly rate can end up with labor and overhead cost out to 4 decimal places. The GL posting can only handle 2. Since the labor posting consists of a single entry on one side (debit to WIP) and potentially 3 separate entries on the other side (labor and overhead) there can be rounding errors. 1.0049 and 1.0049 when rounded to 2 places (as in the GL) and added come to 2.00 but when added as 4 place figures it comes to 1.0098 which then rounds to 2.01. The program needs the GL postings to balance so the variable overhead posting was arbitrarily selected as theplace to put any odd entries that are a result of these sort of rounding discrepancies. As you note, they are pennies.

Title: Re: Variable Overhead Transactions
Post by kevind on 02/20/07 at 06:51:25

Ok, that's understandable ... thanks! :D