Background: Manufacturing Order Close

Use the Manufacturing Order Close (MJC) program to close costs for manufacturing orders, print the Manufacturing Order Close Register, and update the general ledger if you have inventory interfaced to the GL. See Overview: Interfacing Inventory to GL and Road Map for more information.

This topic has these subtopics:

Completed Orders	Labor/Labor Overhead Detail
Preview and Final Register	Adjustment Detail
Register Header	Scrap
Stock Material Detail	Job Cost Summary
Purchase Material Detail	History
Outside Services Detail	Audit Trail

Completed Orders

The program lists manufacturing orders that are eligible for closing. If you selected the Inventory interfaced to GL? option in the System Options Maintenance (XM) program (Inventory Control Options), all registers must be run.

The program does not list orders if:

• Work in process data is incomplete

• Labor entries are incomplete or that is a pending labor import batch

• Items are awaiting inspection or inspected items are awaiting Material Review Board disposition

• A requisition or purchase order that is supply for a manufacturing order has not been received

• Associated sales shipments are incomplete

Run the Manufacturing Order Close Preview Report (MJP) program to determine the reason a manufacturing order is not listed.

Preview and Final Register

The register closes costs for the orders that you select and moves the orders to history.

When you print the Manufacturing Order Close Register, these documents print in this order:

Seq	Document	Comments
1	Preview register	Review to be sure that it is correct.
2	Preview journal	If these options are selected: Print journal after register? option in the System Options Maintenance (XM) program (GL Journal Options) Print GL jrnl in preview mode? run time option in this program
3	Final register	If this option is selected: Allow final reg upd? for this user in the User Maintenance (UIM) program
4	Final journal	If these options are selected: Allow final reg upd? for this user in the User Maintenance (UIM) program Print journal after register? option in the System Options Maintenance (XM) program (GL Journal Options)

Register Header

The register includes this header information for each order:

• Manufacturing branch

• Manufacturing order number

• Parent item number

• Order due date

• Quantity ordered

• Quantity completed and received into finished goods

• Quantity scrapped

• Date picked

• Value of completed item: Quantity complete x Standard unit cost of parent item

• Order status:

Complete	The quantity ordered has been received into on-hand inventory
Closed by rcv	Received less than quantity ordered and clicked Close order? in the Receiver Maintenance (IRC) program
Closed by user	User clicked Close order in the Manufacturing Maintenance (MIM) program

• Parent item description

• Engineering Change Level

• Routing Revision Level

• Product class

• Inventory account code

• Manufacturing order type

• Total complete value for all orders

Stock Material Detail

If you selected the Include stock material detail? Program option, the register includes this information:

• Item number of the component

• Quantity required: (Quantity ordered x Qty per assy) + (Quantity ordered x Qty per assy x Scrap % x 0.01). Fractional quantities are rounded up to the next integer (e.g., 23.001 becomes 24).
  
  In the discussion below, this is referred to as Original quantity required. If the quantity per at the time of order release is zero (i.e., the item was added to the order after release, including substitutions), the quantity required for  manufacturing cost reporting is zero and reports show the quantity required as zero and the actual quantity picked as a variance.
  
  The system captures the Qty required when you released the order. If the Qty complete differs from the Qty ordered (for example, you receive more or you close the order short), the system updates the Qty required.

• Quantity picked

• Usage variance: Quantity picked - Original quantity required

• Standard cost: Standard unit cost x Quantity required
  If received and Qty complete exceeds Qty ordered: Standard unit cost x Quantity picked
  If the original quantity required was zero (i.e., the component item was added or substituted) the standard cost shown is the standard unit cost multiplied by the quantity required when the item was added or substituted.

• Sub: s indicates the item was substituted for a different component (may be in whole or a partial substitution); * indicates this component was a substitution for another component. Example: A bill of material has these components: 1-1, 1-2 and 1-3. You substitute 1-D for 1-3 (i.e., 1.3 is not used): the report shows s for 1-3 and * for 1-D. If you then used some of 1-D and substituted yet another component, 1-D would be listed with *s (i.e., it was both a substitute and it was substituted with a different item).

• Standard cost: Standard unit cost x Quantity required
  If the Qty complete differs from the Qty ordered: Standard unit cost x Quantity picked

• Avg to date: Quantity picked x Average unit cost
  Act to date: Quantity picked x Actual unit cost
  Std to date: Quantity picked x Standard unit cost

The setting for the Costing method for job cost option in the System Options Maintenance (XM) program (Manufacturing Options) for your manufacturing branch determines the unit cost

• Price variance:
  ((Act to date / Qty picked) - (Standard cost / Qty required)) x Qty picked
  ((Avg to date / Qty picked) - (Standard cost / Qty required)) x Qty picked
  ((Std to date / Qty picked) - (Standard cost / Qty required)) x Qty picked

• Usage variance: (Quantity picked - Quantity required) x (Standard unit cost / Quantity required)

• Percent of standard:
  Avg to date / Standard cost
  Act to date / Standard cost
  Std to date / Standard cost

Purchase Material Detail

If you selected the Include purchase material detail? Program option and you purchased non-stock or standard components for specific manufacturing orders, the register includes this information:

• Item number purchased

• Stocking unit of measure

• Special purchase quantity

• Quantity picked for this order

• Special purchase cost:
  For a non-stock item: PO unit cost x Quantity ordered
  For an inventory item: Standard unit cost x Quantity ordered

• Purchase order number

• PO line number

• Quantity ordered

• Quantity received

• PO unit cost

• Actual extended purchase cost: PO unit cost x Quantity received or PO unit cost x Quantity picked based on the how the Allocate costs based on quantity picked system option (in System Options Maintenance - Manufacturing Options) is set.

• Line status: C: Closed

• Date due in stock

Outside Services Detail

If you selected the Include outside services detail? Program option and purchased labor for purchased service operations, the register includes this information:

• Operation description

• Order type: P/O: Purchase order

• Order number

• Order line number

• Status: C: Closed

• Stock due date

• Operation sequence number

• Quantity ordered

• Quantity received to stock

• Usage variance: Quantity received - Quantity ordered

• Standard cost: Cost per piece x Quantity ordered

• Actual cost: Invoiced cost x Quantity received

• Price variance: Actual cost - Standard cost

• Usage variance: (Quantity received - Quantity ordered) x Cost per piece

• Percent of standard: (Actual cost / Standard cost) x 100

• Total outside service cost: Total standard cost, actual cost, price variance, usage variance, and percent of standard

Labor/Labor Overhead Detail

If you selected the Include labor/labor overhead detail? Program option, the register includes this information for labor, labor overhead, and machine overhead.

Labor

• Operation sequence number

• Operation code

• Work center

• Good pieces

• Department number

• Operation type: B: Batch, R: Regular, U: Unattended

• Machine number

• Scrap pieces

• Standard hours based on the routing at the time you released the order

Operation type	Setups	Standard hours calculation
Regular	1	(Hours per piece x Quantity ordered) + Setup time
Regular	Multiple	Quantity ordered / Standard lot size = Number of setups rounded up to the next integer (Hours per piece x Quantity ordered) + (Number of setups x Setup time)
Unattended	1	Setup time
Unattended	Multiple	Quantity ordered / Standard lot size = Number of setups rounded up to the next integer Number of setups x Setup time
Batch		Quantity ordered / Pieces per batch = Number of batches rounded up to the next integer (Number of batches x Hours per batch) + (Number of batches x Setup time)

• Standard dollars: (Standard hours x Direct labor rate) + (Setup time x Setup labor rate)

• Actual hours:

If you entered pieces completed with the WIP Movement (WIPM) program:

Operation type	Setups	Actual hours calculation
Regular	1	(Good pieces x Hours per piece) + Setup time
Regular	Multiple	Quantity ordered / Standard lot size = Number of setups rounded up to the next integer (Good pieces x Hours per piece) + (Number of setups x Setup time)
Unattended	1	Setup time
Unattended	Multiple	Quantity ordered / Standard lot size = Number of setups rounded up to the next integer Number of setups x Setup time
Batch		((Hours per batch / Pieces per batch) x Good pieces) + Setup Setup = (Good pieces / Pieces per batch) rounded up to the next integer x Setup time

If you entered reported hours with the Labor Entry (LLE) program or import them with the Labor Import (LEI) program for labor codes D (Direct), I (Indirect), O (Other), R (Rework), and U (Setup): Regular hours + Overtime hours

• Actual dollars:

• If you entered pieces completed with the WIP Movement (WIPM) program:
  (Good pieces + Scrap pieces) x (Hours per piece or batch x Direct labor rate) + (Number of setups x Setup time x Setup labor rate)

• If you entered reported hours with the Labor Entry (LLE) program or imported them with the Labor Import (LEI) program:
  (Regular hours + Overtime hours) x Direct labor rate

• Efficiency variance: Actual dollars - Standard dollars

• Rate per use variance:

• % of standard: (Actual cost / Standard cost) x 100

• Total standard hours, standard dollars, actual hours, actual dollars, efficiency variance, rate per use variance, and % of standard

Labor Overhead

• Operation sequence number

• Operation code

• Department number

• Work center

• Standard labor dollars:

• For a regular or unattended operation with one setup:
  (Hours per piece x Quantity ordered x Direct labor rate) + (Setup time x Setup labor rate)

• For a batch operation:
  (Hours per batch x Quantity ordered x Direct labor rate) + ((Quantity ordered / Pieces per batch) x (Setup time x Setup labor rate))

• Actual labor dollars: ((Setup hours x Setup labor rate x Setup labor percent) / standard lot size) + (Hours per piece x Direct labor rate x Direct labor %)

• Overhead rate code

• Overhead percent

• Standard overhead dollars: Labor x Overhead percentage

• Actual overhead dollars: Labor x Overhead percentage + Labor overhead adjustments

• Overhead efficiency: Actual overhead dollars - Standard overhead dollars

• Overhead rate per use variance: % of standard: (Actual cost / Standard cost) x 100

• Total standard dollars, actual dollars, overhead efficiency variance, overhead rate per use variance, and % of standard

Machine Overhead

• Operation sequence

• Operation code

• Work center

• Good pieces

• Department

• Operation type:  U: Unattended

• Machine number

• Scrap pieces

• Standard hours: (Hours per piece x Quantity ordered)

• Standard dollars: (Standard hours x Machine labor rate) + (Standard hours x Machine labor rate x Total overhead rate for work center x .01)

• Actual hours: (Hours per piece x  Good pieces)

• Actual dollars: (Actual hours x Machine labor rate) + (Actual hours x Machine labor rate x Overhead percent x .01)

• Efficiency variance: Machine overhead - Burden applied

• Rate per use variance: % of standard: (Actual dollars / Standard dollars) x 100

• Total standard hours, standard dollars, actual hours, actual dollars, efficiency variance, rate per use variance, and % of standard

Adjustment Detail

If you selected the Include adjustment detail? Program option and entered cost adjustments, the register includes this information:

• Adjustment type

• Adjustment sequence number

• Adjust amount

• Authority entered in the Manufacturing Cost Adjustments (MCA) program

• Transaction date on which the adjustment was entered

• Adjustment code

• Adjustment code description

• Total adjustment amount

Scrap

If you selected the Include component scrap detail? Program option and entered component scrap in the WIP Movement (WIPM) program or Labor Entry (LLE) program, or imported with the Labor Import (LEI) program, the report includes this information:

• Component: component item number

• Rtg seq: routing sequence where the component scrap occurred

• Employee number: employee who reported the scrap

• Quantity: how many of this component were scrapped

• Value: quantity scrapped for this component x the component's standard cost

Job Cost Summary

If you selected the Include job cost summary? Program option, the register includes this information:

• The system captured the Qty required when you released the order. If the Qty complete differs from the Qty ordered, the system updates the Qty required.

Field	Standard	Cost to date	Variance	% std
Material	SUM (Qty of components required for the quantity completed x Standard unit cost)	(Qty picked x Actual, average, or standard unit cost) + Material stock adjustments + Special purchase adjustments	Actual, average, or standard - Standard	(Actual, average, or standard / Standard) x 100
Outside srv	Cost per piece x Quantity required	(Invoiced cost x Quantity received) + Outside service adjustments	Actual - Standard	(Actual / Standard) x 100
Labor	((Setup hours x Setup labor rate x Setup labor percent) / standard lot size) + (Hours per piece x Direct labor rate x Direct labor %) (Number of batches x Hours per batch) + (Number of batches x Setup time)	Total labor cost for completed operations + Labor adjustments If you entered pieces completed: (Good pieces + Scrap pieces) x (Hours per piece or batch x Direct labor rate) + (Number of setups x Setup time x Setup labor rate) If you entered or imported reported hours: (Regular hours + Overtime hours) x Direct labor rate	Actual - Standard	(Actual / Standard) x 100
Labor ovhd	Labor x Overhead percentage	(Good pieces + Scrap pieces) x ((Hours per piece or batch x Direct labor rate) + Setup cost) x (Total overhead rate for work center x .01) + Labor overhead adjustments If you enter actual hours with the Labor Entry (LLE) program or import them with the Labor Import (LEI) program: (Reported hours x Direct labor rate) x (Total overhead rate for work center x .01)	Actual - Standard	(Actual / Standard) x 100
Machine ovhd For an unattended operation	(Setup hours x Machine rate) / Standard lot size) + Hours per piece x Machine rate) + ((Setup hours x Machine rate) / Standard lot size) + (Hours per piece x Machine rate) x Overhead percentage)	(Setup hours x Machine rate) / Standard lot size) + Hours per piece x Machine rate) + ((Setup hours x Machine rate) / Standard lot size) + (Hours per piece x Machine rate) x Overhead percentage) + Machine overhead adjustments	Machine overhead - Burden applied	(Actual / Standard) x 100
Adjustments		Miscellaneous adjustments (type X)	Actual adjustments
Totals	Material + Outside services + Labor + Labor overhead + Machine overhead	Material + Outside services + Labor + Labor overhead + Machine overhead + Miscellaneous adjustments	Cost to date - Standard	(Actual / Standard) x 100

History

When you enter PROCEED for the If the register is correct, enter PROCEED to update prompt, the program moves closed manufacturing orders to history. Some reports and inquiries have an Include history? Program option. If you select this option, These programs have the option:

• Manufacturing Order Listing (MHL)

• Manufacturing Order Cost Detail Report (MJCP)

• Manufacturing Order Status Summary (MJR)

• Manufacturing Order Cost Report (MJS)

• Manufacturing Order Analysis Inquiry (MOA)

• Manufacturing Order Summary Inquiry (MOAQ)

• Manufacturing Period Activity (MPA)

• WIP Valuation Report (WIV)

Audit Trail

To activate an audit trail, select one of the files listed below in the Audit Trail Maintenance (XAT) program. The system records all transactions. You can then run the Audit Trails (ATR) program and select that file to print a report of these transactions.

• MP2: Mfg Order Master

• MP9: Mfg Order Components

• O1S: Shipment Header

• O1SB: Shipment Addresses

• O1SF: Shipment Freight Detail

• O1SL: Shipment Lines

• VR1: Receiver Header

• VR1B: Receiver Lines

• VR1BD: Receiver Line Detail

• WIPF: Work-in-process Header

• WIPFD: Work-in-process Detail

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