Re: From Repetitive to Job Shop

Here are some things you should consider:

a.. The LMAC, LOHD, etc. transactions record machine cost, overhead, etc.
charged to MO's in the general ledger. The entries are typically a debit to
Work-In-Process and a credit to Machine Cost Applied, Overhead Applied, etc.
b.. Using these transaction types lets you validate the machine, overhead,
and labor rates that you are using in your standard costs by letting you
compare the costs applied (charged) to work-in-process against the actual cost
that you incurred. For example, if your actual overhead costs were $x for say a
year, then the overhead charged to work-in-process during this time should be
about $x. If not, there is a problem with the amount you are spending or the
number of hours that you assumed when you set the rates for your standards.
c.. This brings up a key point. Using LMAC, LOHD etc only makes sense if you
have clearly defined cost "pools" and you can identify the incurred (actual)
costs associated with each pool. This lets you validate your rates by tracking
how much you are over / under applied.
d.. MAPICS lets you set machine, labor, and overhead rates for each
production facility ( work center ) and has many manufacturing functions geared
to production facilities. Usually this means that it is not practical to have a
one-to-one relationship between production facilities and the cost "pools" that
accountants need to make the LMAC, etc. transactions work. The GL Interfaces
let you identify two or more production facilities to a single "Production
Facility Accounting Class" and then base account assignment rules on these
classes.

Bob Tenney
Bob Tenney Solutions, LLC
828-645-6829 / Cell 828-342-8570

Visit www.tenneypubs.com for books about
MAPICS and FRx
----- Original Message -----
From: "Spears, Raymond" <RaymondS@xxxxxxxx>
To: <mapics-l@xxxxxxxxxxxx>
Sent: Wednesday, April 18, 2007 9:30 AM
Subject: [MAPICS-L] From Repetitive to Job Shop

Hello Group.......
We are at MAPICS version 6, using IFM, REP, PMC reporting to a
production line schedule(LRAP). Our business is changing to more of a
job shop. We have a need to report production by M.O. rather than a
repetitive schedule and production by machine rather than production
line or schedule. We us PCC today for outside operations on some
components, but we are getting more OEM work and have a need to report
labor by machine and department as well M.O. It has been a while since
I have been directly involved with M.O. reporting and the rules needed
to get labor info passed to GL .

1. What rules/info needs to be in place to report by machine ( we do
not use machine rates currently)?
2. How does the RMAC and LMAC rules work?

Any assistance or knowledge you can provide is appreciated, we know
someone out there is have the same business changes we are, thank you in
advance.

Raymond Spears
Director of M.I.S.
Unaka Company

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