Actual Costing

Actual costing captures and records actual manufacturing costs that are associated with shop floor transactions, such as work orders. Actual costing calculates costs by cost component, based on the parts list, routing, and extra costs.

If you are implementing actual costing, you need to thoroughly understand how actual costing flows through the JD Edwards EnterpriseOne systems from Oracle.

Actual costing provides these features:

Feature	Description
Material costs	The system calculates material costs based on the cost method and cost level that you select when you set up the item. You calculate component cost when you issue material to a work order by multiplying the component quantity with the cost that is set up for the chosen cost method in the Item Cost table (F4105).
Labor costs	The system calculates labor costs using: The rates set up for the work center. The Employee Rates table (31/ER). The Employee Master Information table (F060116) if you are using the JD Edwards EnterpriseOne Human Capital Management product suite from Oracle. You must use the Speed Time Entry program (P051121) to retrieve information from the Employee Master Information table. Costs that you manually enter when you enter the time and quantity completed.
Machine costs	The system calculates machine costs using: The work center rates for the cost method that you specify. The work center rates that the system calculates using information in the Equipment Rates table (F1301). The costs that you manually enter when you enter the time and quantity completed.
Overhead costs	The system calculates overhead costs using rates or percentages from the Work Center Rates table (F30008). You use the Manufacturing Constants program (P3009) to select the type of overhead costs that you want to include.
Extra costs	You define extra costs for an actual cost item in the Cost Components program (P30026) by entering them directly into the frozen cost field.
Outside operations	The system calculates costs for outside operations from the cost method that you specified for the item that is processed by an outside company (*OP item). The system calculates extra costs from the Item Cost Component Add-Ons table.