on 02-18-2015 5:11 AM
Dear Experts,
can you please tell me, why the Labor item type is only a sales item?
What we do where we add when the purchase item include the Labor Cost?
Where this Labor item type is used in SAP B1?
Thanks in advance
Hi,
Where this Labor item type is used in SAP B1?
To use in the Service module to calculate the amount of time spent completing a task.
What we do where we add when the purchase item include the Labor Cost?
Create an non-inventory item (it is not necessary should be from labor item type. You can create Item type item without selecting as inventory item.) and add second line GRPO/AP invoice.
Thanks & Regards,
Nagarajan
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Thanks Nagarajan
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Dear Rahul,
Thanks.
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Dear Rahul,
It's OK, if we produce the item in Inhouse.
How we add that Fabricating Cost in Purchase Documents such as GRPO,A/P invoice?
Thanks in advance.
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Hi Vignesh,
Simply create a Non Inventory Item as Fabrication and add this item into GRPO/AP Invoice as second line item and put Price as 50 so in the first line you have RM worth 100 and second line for Fabrication cost worth 50. This way the Total would be 150 if Vendor is charging Fabrication Cost within same invoice.
Regards,
Rahul
Dear Rahul,
In case,
We purchase one Item which is fabricated by our vendor.
In the Vendor invoice,
They mention,
Item Cost - 100
Fabricating Cost- 50
Total - 150
Where we mention that Fabricating Cost in SAP B1?
Regards
Vignesh Ravi
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Okay,
You have to create a Labour/Non inventory Item with Standard Valuation method and define 1.00 as cost.
When you perform a production for Fabrication where you issue RM Qty of 100 Cost and plan 50 qty of Labour item which will cost as 50 and when finally you receive Fabricated product it will have a cost of 150.
If you are using SAP 9.1 version please use Resource Master for Labour as it is more efficient than using Non Inventory Item in Production Order.
Hope this will help you.
Regards,
Rahul
Thanks Balaji and Rahul.
One more Question?
How can we add Labor Cost of the Purchase item in SAP?
Thanks in advance.
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Hi
Labour Cost is the expenditure item it is not treated as stock so we create it is as non inventory item
How to use Labour items in a Production Order
To include a non-stock item in your bill of materials for a 'Production Order' please do the following.
Create a child item - 'labour' as Item Type 'Labour'.
Ensure the issue method of this item is 'Backflush'.
Costing method must be 'Standard' and a 'Cost Price' must be maintained at this stage. The reason for this is that the cost price can be updated since it is a non inventory item and so will not have any stock posting.
Choose appropriate expense account, WIP account and WIP variance account for this item.
With Regards
Balaji Sampath
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Hi,
You can use these Labour items in Production also to record the labour cost.
But if you want to use Labour type of item in purchase docs also, you can create non inventory item.
Regards,
Rahul
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