Although MAS500 allows employees to log into multiple work orders and machines at the same time, the labour hours and cost do not split. Instead, the hours and hourly cost are duplicated in each individual workorder/activity, doubling or tripling the cost of that employee for the time they are logged into more than one job, also affecting job completion entries that are generated by the system, overstating WIP and COGS entries hitting the financial statements. This would require a fix.
For example, if an employee's rate is $10 per hour, and he logs into 3 machines to run 3 simultaneous processes, the cost to each work order is $10 + $10 + $10 = $30 total cost for one hour. This overstates the actual cost in each of the work orders which flows through WIP, finished goods, and job completion entries to COGS, throwing off the financial statements. Assuming the employee were to log off all 3 work orders at the same time, the cost after one hour should be $3.33 to each work order. If he finishes off on one of the work centres before the others and logs out of it, then the system should calculate that end time accurately while keeping him logged into and continuing to accumulate his time on the other 2 remaining.

by: Arturo D. | over a year ago | 2 - Manufacturing