Hi @Walter ,

The Utilization statistics are used when you work with periodic weighted average costing. The concept of periodic weighted average (periodic WA) rests on the premise that costs for material and time used in the process to purchase and manufacture parts should be the costs that are accounted for in deliveries to the customer. This means that a fixed cost (i.e., the weighted average value of the previous period) in the application is used during the period. At period close, a new weighted average is calculated and applied to all transactions that are created during the period to be closed.

In periodic weighted average costing method, before closing the accounting period a Calculate Actual & Estimate Hours will be run and this calculate the total actual hours & estimates hours reported in the period which help to deduce the actual hourly rates for work center & labor class. All transactions corresponding to the respective period will be updated with the new actual rate when the Periodic Weighted Average is calculated.

Here estimates hours are the Sum of the Planned Hours for all the closed operations in the period and this information will be retrieved from statistical operation window. Actual hours are the sum of the reported hours, and this will be retrieved from the labor & operation transaction history.

This type of costing is used in country like Brazil where it a legal requirment to have the actual cost.

Work center statistics will be updated during this process when the Calculate Actual & Estimate Hours job is run.

 Hope this helps!

Regards,

Mithun K V

Hi Mithun,

Thanks a lot for the detailed answer.

Best Regards

Walter