1. Product Costing and Manufacturing Accounting Implementation Guide
  2. Understanding Manufacturing Constants

Understanding Manufacturing Constants

You must define product costing and manufacturing accounting information that is unique to the branch/plant.

You use the Manufacturing Constants program (P3009) to specify this cost calculation information:

  • Whether to maintain costs at the work center level or the cost component level.

  • Which overhead costs to calculate.

  • Whether the program considers work center efficiency when calculating direct labor and overhead.

  • Whether overhead costs are entered as percentages or rates.

If you use actual costing, you can specify the sources for labor and machine rates that the system uses to calculate labor and machine costs.