Cost Information Update in Manufacturing Accounting

You create journal entries for work in process (issues, labor entry, and machine run time), completions, and manufacturing variances before you post these transactions to the general ledger. For cost management, the system updates the subledger, cost object, and item fields.

In the JD Edwards EnterpriseOne Manufacturing Accounting system, you use programs to create journal entries for various types of shop floor activity, including:

• Material issues

• Labor and machine reporting

• Completions

• Scrap

• Variances

• Engineering

• Planned

• Material usage (actual)

• Labor efficiency (actual)

• Other (volume)

To enter detail journal entries for a work order or rate schedule by cost component, enter a different object or subsidiary account number for each cost component.

For example:

Cost Component	Business Unit	Account Number
A1	M30	1341
B1	M30	1342
B2	M30	1343

To summarize the cost components for an item on a work order into a single journal entry, enter the costs with the same object and subsidiary account number.

For example:

Cost Component	Business Unit	Account Number
A1	M30	1340
B1	M30	1340
B2	M30	1340

In addition, you can set processing options to:

• Summarize material issues (document type IM) by account number within a work order.

  One journal entry exists for each unique combination of account number and work order number.

• Summarize all journal entries by account number across work orders.

  One entry exists for the batch for each account. The entry is the sum of all work order transactions for each account by document type.

• Print a summarized Accounting Transaction report.

• Activate flex sales accounting to find rules that indicate how to populate cost objects.

If you summarize journal entries across work orders, the program batches the appropriate work orders and then assigns a new work order number to the batch. This summarized work order number appears on inquiry forms and reports, but does not refer to an actual work order.

The system uses the following data to match the transaction to the AAI account:

• Work order type for the AAI.

• Company number that is associated with the work order or component branch/plant.

  If the system does not find a match, it uses 00000.

• Document type that is associated with the transaction.

• GL category code for the transaction item. If the system does not find a match, it uses **** (four asterisks).

• Cost component.

• Branch/plant.

See also:

• "Creating Journal Entries for Work in Process or Completions" in the JD Edwards EnterpriseOne Applications Product Costing and Manufacturing Implementation Guide.