The system calculates the Periodic Costing value for WO operation labor and burden using the rates defined in Periodic Costing work center rates and the time tracked with the operation history transactions. The system summarizes these WIP calculations by WO lot, WO operation, WO department, WO work center, and machine. The PCLABORT transaction type stores the summarized Periodic Costing calculated rates and the standard reversed costs. When only one operation history record exists for the WO lot, WO operation, WO department, or WO work center; then, the system does not create a summarized record. The system adds the value as WIP for the work order.

These operation history types do not track labor and burden:

On occasion, you may need to adjust the cost calculated for a WO, operation, and cost element. You do this using WO Operation Adjustment (30.5.5.14), and the system stores the adjustment value as the PCWOP-AD operation history type.

The valid cost elements for this function are labor, burden, and subcontracting. The system picks up these additional costs during this calculation, stores them on the work order routing period balance, and does not include them in the summarized PCLABORT transaction.

When the system performs a repetitive transfer, it transfers WIP from the last closed order to the next open order and creates GL transactions to capture the cost movement. Periodic Costing identifies the correct pair of close and transfer transactions.

PC Calculation processes Service and Support Maintenance (SSM) operation history (op_hist) EXPENSE transactions without reversing or revaluing the transactions. The system adds the transaction value to the Periodic Costing WIP value of the work order subcontract element and updates the calculation sequence number so that the transaction is included in the WIP value at the value at which you first entered it.

Periodic costing use the actual labor and burden rate that you define in PC Work Center Rate Maintenance (30.5.3.1) for CAR operation cost calculations. When PC processes the operation transaction (labor, burden) created by CAR or the RCT-UNP created by partial returns during CAR, PC uses the service account for the credit side.

When Periodic Costing processes the labor and burden operation transactions that CAR creates, the system uses the service labor and service overhead account codes that you specify in Product Line Maintenance (1.2.1) for Periodic Costing transaction credit accounts.