|
xTuple for Service Businesses Demo Guide |
|
|
xTuple for Service Businesses Demo Guide |
| 2.1. Work Centers | ||
|---|---|---|
 | 2. Routings |  |
The work center is the place where you define the monetary value of labor and overhead. To continue with our current example, follow these steps to open the PAINT1 work center:
Pull down the module menu.
Select the submenu.
Select the option.
Open the PAINT1 Work Center.
In the PAINT1 work center, the rate for setup and run time is the same—that is, $12.50/hour. When operations are posted, this is the rate that will be used to record labor costs against the work order.
In xTuple ERP, the setup labor rate is charged only once per work order. On the other hand, the amount of run labor charged will vary depending on the amount of run time recorded against the work order.
As we can see in our PAINT1 work center example, overhead charges are calculated as a percentage of the run labor rate. In other words, the overhead charged is 10% of $12.50 ($1.25) for every hour of run time consumed.
So, to review:
Operations define standard times for setup and run time, as well as rules for materials and finished goods handling.
They also link work orders and work centers.
Finally, work centers define the labor and overhead rates charged for operations.
Let's turn now to how all these factors roll up into the costing for manufactured inventory items.
| |  | |
| 2. Routings |  | 2.2. Item Costing |