This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Ledger account	Category	Type	D	C	Sum
Operations (costs or WIP)	200	10	X		Number of hours * Actual total rate
Labor costs	200	20		X	Number of hours * AC rate
Machine costs	200	30		X	Number of hours * AC rate
Overhead costs	200	40		X	Number of hours * AC rate

Posting point

Process hours in the Time Registration module

Remark

The actual machine rate is based on the hour code, machine rates, or capacity group rates.

This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entry

Ledger account	Category	Type	D	C	Sum
Operations (costs or WIP)	200	10	X		Number of hours * Actual total rate
Labor costs	200	20		X	Number of hours * AC rate
Machine costs	200	30		X	Number of hours * AC rate
Overhead costs	200	40		X	Number of hours * AC rate
Indirect hours	201	10	X		Number of hours * AC rate
Labor costs	201	20		X	Number of hours * AC rate

Posting point

Process hours in the Time Registration module

Remark

The actual labor rate is based on the hour code or function group.

This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entry

Ledger account	Category	Type	D	C	Sum
Operations (costs or WIP)	200	10	X		Number of hours * Actual total rate
Labor costs	200	20		X	Number of hours * AC rate
Machine costs	200	30		X	Number of hours * AC rate
Overhead costs	200	40		X	Number of hours * AC rate

Posting point

• Process hours in the Time Registration module

Remark

The actual overhead rate is based on the capacity group.

This field can only be used to add cost centers to journal entries using scripts. This field is used to specify the correct cost centers.

Note: The cost centers entered are not used for the standard program functions, but only for scripts.

This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entry

Ledger account	Category	Type	D	C	Sum
Indirect hours	201	10	X		Number of hours * AC rate
Labor costs	201	20		X	Number of hours * AC rate

Posting point

• Process hours in the Time Registration module

Remarks

• Indirect hours are posted when the Posting type for the hour code is set to 'Presence registration - indirect' and the Post to field is set to 'Cycle labor costs', 'Machine cycle costs' or 'Cycle labor and machine cycle costs'.
• You can still add different indirect hours accounts in the hour code settings.

By default, this field contains the rate specified for the department to which this capacity group belongs.

The machine rate is the average hourly rate for the machines in this capacity group. It is used in the preliminary costing stage to calculate the machine costs for operations that take place in this capacity group. These costs are calculated as follows: Preliminary number of hours * Machine costs per hour.

The machine rate of the capacity group is also used for actual costing purposes (Actual number of production hours * Machine costs per hour), unless a different rate has been specified for the hour code or for the machine on which the operation has been performed.

First, the machine rate search path for actual costing purposes is checked to see whether a machine rate has been specified for the hour code. If that is not the case, the machine rate specified for the machines is used. If no rate has been entered for the machine, the machine rate of the capacity group is used as the actual costing rate.

By default, this field contains the rate specified for the department to which this capacity group belongs.

The labor rate is the average hourly labor rate for this capacity group. It is used in the preliminary costing stage to calculate the labor costs for operations that take place in this capacity group: Number of hours * Labor costs per hour.

The labor rate is not used for actual costing purposes. To determine the actual costing rate for labor costs, the software checks the function group rate of the employee who actually performed the operation, unless a different rate has been specified for the hour code.

By default, this field contains the rate specified for the department to which this capacity group belongs.

The overhead rate is the average hourly overhead rate for this capacity group. It is used in the preliminary costing stage to calculate the overhead costs for operations that take place in this capacity group: Number of hours * Overhead costs per hour.

The overhead rate is also used for actual costing purposes: Actual number of production hours * Overhead costs per hour.

The overhead is always based on machine hours.

This field is only relevant if you are using the backflushing process.Use this field to specify the backflushing method for the capacity group.Select this check box to post machine hours using the backflushing process.

Note: If an operation line contains a specific machine, the machine-specific setting of the Backflush machine hours field takes precedence over the setting of this field as specified for the capacity group.

This field is only relevant if you are using the backflushing process.Use this field to specify the backflushing method for the capacity group.Select this check box to post labor hours using the backflushing process.

Note: If an operation line contains a specific machine, the machine-specific setting of the Backflush labor hours field takes precedence over the setting of this field as specified for the capacity group.

This field is only relevant if you are using the backflushing process.Use this field to specify the backflushing method for the capacity group.

The overhead hours are always posted at the same time as the machine hours. Select this check box to post the overhead costs using the backflushing process. In general, you should always select this check box if you also want the machine hours to be posted using the backflushing process. If you leave this check box empty, but do select the Backflush machine hours check box, the overhead hours will be posted, but the overhead costs will not.

Note: If an operation line contains a specific machine, the machine-specific setting of the Backflush overhead field takes precedence over the setting of this field as specified for the capacity group.