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Question

How to assign shop order labor to expense and not to the balance sheet


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We would like to be able to assign shop order labor to expense and not to the balance sheet.

 

Example. Shop order has two components – a part and 2 hr of labor:

Material $100

Labor $20

The goal is to have $100 in Finished Goods (balance sheet) when the shop order is complete and $20 on a P&L account.

With the current setup, the labor cost rolls into inventory cost, which results in the total of $120 going into inventory.

Since we are not sure what makes up the current set up - we don’t know what needs to be changed in IFS. Any ideas on set up/configuration that needs to be done to accomplish our example?

eqbstal
Superhero (Partner)
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  • Superhero (Partner)
  • June 4, 2020

mrsweeney,

Have you checked the posting rules?

I think that you could check:

  • M42 Value Added, Labor Cost
  • M58 Labor Overhead
  • M209 Cost of indirect Labor

There are others that are Labor related.

See if one of them, or more, have the same account number as the inventory account.

Steve

I'm not a financial consultant. This is free advice to check. Any results can't be used against me :grin:


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  • Hero (Employee)
  • June 4, 2020

If the doesn't do the trick it might be an option to look for setting up a Automatic Reposting Rule. This can be triggerd based on a posting type and a specifc account. This levels out a specific posting and reposts it using this rule.

 


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