Re: Job Costing ?

[Bob Tenney <bobtenney@xxxxxxxxxxxxx>]

Skip, The key thing to understand about MAPICS is that it IS a job costing 
system. The features that let you backflush material, labor, and overhead are 
time savers for businesses that believe (sometimes rirghtly / sometimes 
wrongly) that the cost of capturing ACTUAL material, labor, oand overhead costs 
is not justified.

Here are three things to consider:

(1) The standard batch order size size has a very limited impact on costs. It 
only affects the standard setup labor costs and the overhead associated with 
the standard labor costs. All other costs vary with the number of units 
produced.

(2) All manufacturing orders are NOT equal. It makes sense to collect and 
record ACTUAL costs in some cases and use backflushing in others. Selecting the 
right MO's for actual costing and having clearly-defined, CURRENT rules for 
making the decision is key.

(3) If you use actual costs for some MO's you can report them from the MOxxx 
history files. You can still use standard costs for bookkeeping purposes.

Bob Tenney
828-526-8976

-----Original Message-----
From: meyno <meyno@xxxxxxxxxxxxxxxxxx>
Sent: Dec 30, 2003 11:31 AM
To: MAPICS-L SUBMIT <MAPICS-L@xxxxxxxxxxxx>
Subject: Job Costing ?

Is anyone using the MAPICS costing system as a job costing system?

We need to find a better way to track our costing, and a job costing system
seems to be preferred. Cost are dependent on the number of items ordered and
manufactured in the same MO.  The standard of the item will change.

We do not want to involve CSR's in any of these processes, they just enter
the order.

Finished good items are not the problem, it is those item that are made to
order.


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