Bill of Material - Labour Cost

[Former Member]

All Experts,

How can I add Labor cost to Bill of Material.

The scenario is as below:

While making a product we purchase materials from Vendors and use Temporary Labors and Payroll employees for that.

Now coming to the payment part,

1. Temp Labors Payment entry is made through Journal Entry and there is a account code in Chart of Accounts for the Temporary Labors.

2.Payroll employees get salary from payroll.

Considering the nature of transaction and entries above, please suggest me the procedure to make a BOM.

Regards

Aniruddha

[former_member206488 · Accepted solution]

please see this EoP wiki page:

How to include labour costs in a BOM https://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=22741052

All the best

[Former Member]

Hi Aniruddha......

How are you?

Actully you need to add another item as labour having item type labour and put the valuation method standard so that you can give the item cose manual.

Now the moment you do the production the labour cost will be added to the product.....

Regards,

Rahul