We are currently working in test to update our Burden rates. After we update the burden rates, how do we update our routings in part Maintenance with updated Burden rates?
Best answer by akosters
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Userlevel 1
Under Last Cost, Average Cost, and FIFO Costing the Part Maintenance Costs won’t update until jobs have inventory received.
For standard costing, you will use the Costing Workbench to perform a cost rollup. Then Post the new costs following finance’s sign off.
I have a Work Instruction for standard cost rollup/posting in E10.2.500.3 if you are interested.
-Anthony
Senior Cost Analyst
Anchor Partners
Saginaw, TX
Assuming you mean the $/hour Burden Rate, this should be a real time update & you won’t have to push anywhere. At least this has been our experience adjusting Labor & Burden rates (we use standard costs). You will want to do a cost roll to have the impact realized on your standard cost when you feel that is appropriate.
Good luck & happy to discuss,
John Bailly
If you just want to update the rates in the quote, go to Quote Details/Operations/Scheduling Resources tabs. Click the “override rates” button then click it again to un-check it, That will update your rates to the current rate stored in the resource group.
Happy Holidays,
Ed Ferrier
Thanks everyone! We’ll be rolling the std for all parts first, to see differences, then changing the burden rates and rolling the std again to get how the burden rates effect the costs.
Happy Holidays!!!!
Joy Fekkes
Userlevel 1
PMed since it appears the EUG Library isn’t up yet following the host change.
If anyone else wants a copy of the Standard Cost Rollup Work Instructions please PM me.
-Anthony
Senior Cost Analyst
Anchor Partners
Saginaw, TX
A
Does anyone have experience in how to manage setups in the MoM & Setup Burden? We might have a potential concern/issue.
We have a setup rate in the resource which uses the same rate as burden. Some methods have a setup time on the method. Problem is, folks are not using setup in MES as a standard practice. I am not sure what they are even using that information for since we don’t use scheduling and folks use Production Activity. I think we should remove the setup rate from the resource because our process seems vague and we don’t track it correctly. Before we take action, I wanted to better understand it.
- If we produce different quantities, how should the setup time be managed? Its a one and done setup to run the quantity on the job.
- What does setup in the MoM do to manufacturing variances on jobs?
- If we costed the parts with an hour for setup per the example, is standard cost over valued?
Example: We have 1 hour for setup time. If it taken 1 hour to setup for the job, qty of 7, we don't want standard cost to reflect a cost of an hour for each part. it is really dependent on the job.
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