[Jennifer Codding]

?

we are looking for a way to account for labor and overheard on vendor items and show us what cost is the “True” cost of the item which would include label and overhead.

 

Currently, we take all overhead and labor and extend that amount to manufacturing floor using resources.

 

I have one idea. I want to add a field to the item level that would be the “managed” cost of an item including labor and overhead for Vendor items.

 

We are not sure if AX has a way to account for this need?

 

Also, since we have so much labor/.overhead applied to manufacturing items, we don’t get accurate cost or margins from the manufacturing floor.

 

Do you have any thoughts on this?

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Jennifer Codding
IT Business Analyst
CMC Group
Bowling Green OH
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[Nirav Modi]

?Good Day !!

for Overhead and Labor Charges, You can try setting up Costing Sheet, Costing sheet will help you to capture the Indirect cost on the manufacturing and will give you near to Perfect costing for to calculate margins.

You need to setup cost groups and attaching it to Routes, Material to calculate it, you can refer USMF in Contoso Data to see sample Configuration of Costing Sheet.

If you are using D365FO then Cost Management –> Indirect Cost Accounting Policy Setup –> Costing Sheet.
if you are using Ax 2012 then Inventory Management –> costing –> costing Sheet.

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Nirav Modi
Project Manager – Ax
Indusa
http://www.indusa.com
00919426381531
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[John Balmaceda]

Agreed, the costing sheet is the best way to break out these costs for manufactured items.  
You will be able to see the costs once the BOM is rolled up. See example.

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John Balmaceda
MCA Connect
Denver CO
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[Josh Knox]

Hi Jennifer,

Have you looking into indirect costing?

Best,
Josh

Dynamics 365: Indirect Cost Components in the Project Management & Accounting Module

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Dynamics 365: Indirect Cost Components in the Project Management & Accounting Module Watch this short video to learn about indirect cost components in the Project Management and Accounting Module in Dynamics 365 for Finance and Operations. Are you interested in receiving a personalized demo? Contact us today! https://www.westerncomputer.com/forms/demo?scr=youtube View this on YouTube >

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Josh Knox
SAGlobal Holding Ltd
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[Zvika Rimalt]

I believe your URL is about a functionality in the project module, to add indirect cost on time recorded to projects. I don’t think it applies to inventory overhead.

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Zvika Rimalt
Functional Consultant
Vancouver BC Canada
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[Zvika Rimalt]

Are your items purchased or manufactured?

If manufactured you can use purchase order charges to burden the inventory with overhead amounts during receipting/invoicing of the PO.

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Zvika Rimalt
Functional Consultant
Vancouver BC Canada
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