Labor Costs
Track and analyze employee costs in manufacturing
The MRP Workorder HR Account module tracks employee costs during manufacturing operations and integrates them into analytic accounting and cost analysis reports. It automatically records which employees worked on which manufacturing orders and calculates the associated labor costs.
Key Features
Key points
• Automatically track employee time spent on work orders
• Record employee costs in analytic accounting
• Link employees to specific manufacturing operations
• Calculate actual vs expected employee costs
• Analyze employee cost efficiency by operation
• Track average employee cost per unit produced
How It Works
When employees work on manufacturing orders, the system automatically records and calculates costs.
Key points
• Time Tracking: Productivity records are created when workers log time on work orders
• Cost Calculation: System calculates costs based on employee hourly rate, actual time, employee ratio
• Analytic Entry: Analytic account line is created with employee reference, cost amount, time duration
Cost Modes
The module supports two cost calculation modes.
Key points
• Actual Mode: Uses real time tracked by employees on productivity records
• Estimated Mode: Uses expected duration and employee costs from work order settings
Cancellation Handling
When a work order is cancelled, all employee analytic account lines are automatically removed to ensure cost reports remain accurate.
Viewing Employee Costs
Manufacturing Analysis Report includes two new cost fields.
Key points
• Total Employee Cost: Total labor cost for the manufacturing order
• Average Employee Cost / Unit: Labor cost per unit produced
• These fields are visible to users with "Manage Routings" access
Using Pivot View
Steps
1. Go to Manufacturing → Reporting → Manufacturing Analysis.
2. Use pivot view to analyze: Employee costs by product, Employee costs by work center, Cost trends over time.
Analytic Account Lines
View detailed employee work records in manufacturing.
Steps
1. Navigate to Accounting → Analytic Accounting → Analytic Lines.
2. Filter by employee to see their manufacturing work.
3. Each line shows: Employee name, Work order reference, Time spent, Cost amount, Analytic account.
Cost Comparison
The module calculates both actual and expected costs.
Key points
• Expected Employee Cost: Based on BOM routing, workcenter employee rates, and employee ratio
• Actual Employee Cost: Based on real time tracked by employees
• Variance: Compare expected vs actual to identify efficiency issues
Configuration
Required modules: Manufacturing (MRP), Work Orders (mrp_workorder), MRP Account Enterprise.
Workcenter Setup
Steps
1. Go to Manufacturing → Configuration → Work Centers.
2. For each workcenter, set: Employee Costs per Hour (hourly rate), Employee Ratio (percentage of employee time, default 100%).
Operation Setup
On BOM routing operations, can override workcenter Employee Ratio if needed (e.g., 50% if only half an employee's time is needed).
Key Metrics
Key points
• Employee Cost: Total labor cost for manufacturing
• Unit Employee Cost: Labor cost per unit produced
• Expected vs Actual: Variance analysis for cost control
• Operation Duration: Time spent by employees on each operation
Analysis Tips
Key points
• Identify Cost Overruns: Compare expected vs actual employee costs to find operations that take longer than planned
• Workcenter Efficiency: Group by workcenter to see which areas have the highest labor costs
• Product Profitability: Include employee costs in total manufacturing cost analysis
• Employee Productivity: Track which employees are most efficient on specific operations
Access Rights
Key points
• Basic Users: Can see their own productivity records
• Manufacturing User: Can view work orders and basic costs
• Manufacturing Manager: Can view all employee costs and analytic data
• Manage Routings Group: Required to see employee cost fields in reports
Integration with Other Modules
Key points
• HR: Uses employee records and rates
• Analytic Accounting: Creates analytic lines for cost tracking
• MRP Account: Integrates with overall manufacturing cost analysis
• Project: Can allocate employee costs to projects via analytic accounts
Data Flow
Steps
1. Employee logs time on work order → Productivity record created.
2. Work order duration computed → Employee cost calculated.
3. Analytic line created → Cost recorded in accounting.
4. Manufacturing report updated → Costs visible in analysis.
Troubleshooting
Common Issues
| Issue | Solution |
|---|---|
| Employee Costs not showing | Verify workcenter has "Employee Costs per Hour" configured, Check user has "Manage Routings" access, Ensure work order is in "Done" state |
| Incorrect cost calculations | Review employee ratio settings on operations, Check workcenter employee cost rates, Verify time tracking mode (actual vs estimated) |
| Missing Analytic Lines | Confirm analytic account is set on manufacturing order, Check work order has not been cancelled, Verify employee is assigned to productivity records |
Best Practices
Key points
• Configure Rates Accurately: Keep workcenter employee costs up to date
• Use Actual Tracking: Enable time tracking for accurate cost data
• Review Variances: Regularly compare expected vs actual costs
• Train Employees: Ensure workers properly log their time
• Set Employee Ratios: Adjust ratios when multiple employees share work
• Monitor Reports: Use manufacturing analysis to identify cost trends