Operations

Operations are functions performed by Workers in a Work Center. The Operation supplies standard hourly labor cost to Routings as well as the General Ledger accounts to which to post actual labor. Regular and Overtime Labor can be posted to the same or different accounts that are specified in Operations. The labor cost of an item is calculated from number of units, the number of hours (entered as man hours), and the standard cost of labor (typical hourly cost of the Operation). In addition, Operations can now supply burden rates and costs to Routings, which will then roll up to an item's "Current Burden" cost as defined in its Item Master Costs tab.

If the Operation is flagged as "WIP" and actual labor is posted to a Job that is still open, the labor expense is posted to the "WIP Labor" account defined in Accounting Options. When the labor costs are relieved, they post to the Operation’s GL accounts for Regular and Overtime Labor. If the Operation is not flagged as "WIP" or if it is flagged as "WIP" but the Job is closed when actual labor is posted, the labor expense posts directly to the accounts specified in the Operation. Typically, Operations are flagged as "WIP".

Operations for Jobs due on a certain day that are not scheduled are shown at midnight in the Planned On Hand Calendar. Example: A Job is created with Routings that are not scheduled, but the Job is due 5/29. On the Planned On Hand Calendar, these Routings will show at midnight on 5/29 for both Date Based On of Start and End.

Labor postings during Job closing

The impact of actual labor postings during the Job closing transaction are discussed below. In order for labor to be posted during closing, the "Relieve WIP Labor" flag must be checked on the Close/Relieve Job form. Note that when the "Close Job" flag is checked, the "Relieve WIP Labor" flag is checked and grayed out by default. Security exists to allow users to un-check the "Relieve WIP labor" flag.

When the “Relieve WIP Labor” flag is checked, the journal entry will credit the "WIP Labor" account defined in Accounting Options, and debit at least one and possibly more Labor Expense accounts, depending on how labor expense is defined on Operations. The labor expense accounts being debited are those on the Operation records for those labor records that were in WIP Labor. A sample posting is below.

Account	Debit	Credit
Labor WIP		1000
Labor Exp1	700
Labor Exp2	200
Labor Exp3	100

The precursor process to this is the Labor Posting in Payroll Reporting. When labor entries are posted, they credit the "Accrued Payroll" account defined in Accounting Options, and either debit the "WIP Labor" account (if the Job is still open) or the "Labor Expense" accounts from the Operations (if the Job is already closed). A sample posting is below.

Account	Debit	Credit	Notes
Accrued Payroll		2000
Labor WIP	1000		For open Jobs
Labor Exp1	750		For closed Jobs
Labor Exp2	150		For closed Jobs
Labor Exp3	100		For closed Jobs

In summary, closing the Job is finishing the process that was begun by the labor posting, sending labor records that had been temporarily sitting in WIP Labor because the Job was open along to their natural labor expense accounts.

System Navigation

Production > Maintenance > Operations

Edit Operation form

Opened via the "New" or "Modify" buttons on the Operations form.

General tab

Field/Flag	Description
Name	Displays the description for the Operation.
Labor Expense	Defines the Expense account to which labor expenses are posted for each operation.
Burden Expense	Defines the Expense account to which Actual Burden, specified in the "Burden" field on Worker records, is posted via Payroll Reporting. Represents any additional costs that should be added to a Finished Good. Uses for calculating individual Worker Burden include expenses bore by the company relative to that employee but not affecting their hourly wage. Example: medical benefits, PTO time calculation, or some sort of supervisor salary or other indirect labor that is allocated toward worker hours.
Job Finish Labor	Defines the Expense account to which Standard Labor is credited when finishing a Job in Standard Cost mode. If left empty, the "Job Finish Labor" account on the Item Master Accounts tab is used.
Job Finish Burden	Defines Expense the account to which Standard Overhead is credited when finishing a Job in Standard Cost mode. If left empty, the "Job Finish Burden" account on the Item Master Accounts tab is used.
Crew Size	Defines the number of workers needed to perform the Operation. This field may contain up to two decimals. The "Crew Size", "Units", and "Hours" fields are for informational purposes only and do not provide the default when Routing Sequences using the Operation are created. Instead, the system uses the "Crew Size", "Units", and "Hours" that are entered on the Edit Routing Sequence form when performing calculations.
Units	Used in conjunction with "Hours" to define how many units/pieces can be produced/handled in the given time period.
Hours	Defines the time required to complete the "Units" specified.
Standard Labor	Defines the typical hourly labor cost of the Operation. If the "Roll Up Labor Costs From Routing" flag is checked on a Part's Item Master Properties tab, the system will make the following evaluation to determine the "Current Labor" on the Item Master Costs tab: Search for a default BOM on the Part that contains a default Routing that contains an Operation. If found, the system will use the value in this field for that Operation when calculating the costs to roll up to the "Current Labor" field. If the item contains a Facility Part Cross Reference and the "Use Costs" flag is checked, the system will check to see if there is a default Facility-specific BOM when attempting to roll up costs to the "Current Labor" field on the Facility Part Costs tab. In this case, if the default Facility-specific BOM contains a Routing with an Operation, the system will use the "Standard Labor" from that Operation.
Standard Burden	Defines the typical hourly burden cost of the Operation. If the "Roll Up Burden Costs From Routing" flag is checked on a Part's Item Master Properties tab, the system will make the following evaluation to determine the "Current Burden" on the Item Master Costs tab: Search for a default BOM on the Part that contains a default Routing that contains an Operation. If found, the system will use the value in this field for that Operation when calculating the costs to roll up to the "Current Burden" field. If the item contains a Facility Part Cross Reference and the "Use Costs" flag is checked, the system will check to see if there is a default Facility-specific BOM when attempting to roll up costs to the "Current Burden" field of the Facility Part Costs tab. In this case, if the default Facility-specific BOM contains a Routing with an Operation, the system will use the "Standard Burden" from that Operation.
Active	If checked, this record is active. Only active records may be used in the system.
Default	If checked, this Operation will be used as the default when creating new Routings.
WIP	If checked, this Operation is allowed to hold WIP, which is typical. If actual labor is posted to a Job that is still open with Operations that hold WIP, Labor Expense is posted to the "WIP Labor" account defined via Accounting Options until labor costs are relieved, at which point they post to the Operation’s GL account. Operations with this flag not checked post labor directly to the GL account.
Certification Required	If checked, a Worker must have this Operation listed on their Certifications tab in order to perform it.

User Fields tab

User Fields provide companies with a useful tool to add additional information or selection options via the use of list boxes to master data records and orders throughout the Deacom system. The information entered in User Fields is also available for printing on many of the print outs and labels throughout the system.