Accounting flow for Direct Expenses in ERP Environment

As discussed over the meeting held couple of minutes back, please send us the item standard rates and resource rates for costing at the earliest for User Acceptance Testing (UAT) purpose.

In current situation: 

Payroll expenses for Direct Labor would be accumulated under Direct Labor cost center of a Plant irrespective of departments

Night Shift Allowances for Direct Labor would be accumulated under Direct Labor NT cost center of Plants irrespective of departments

A discussion is required as to whether the Management wants/will want to see, in cost sheet, the splitted labor costs under different operations or not. If yes, the current COA (Chart of Accounts) and Data Masters might get affected. Again, a decision from the Head of Manufacturing is yet to be taken as to whether rates for Overtime is required further- which will necessitate creating an additional Labor resource. Anyway, in either cases, costs of products will not be changed.

Please confirm with CFO & relevant stakeholders and let me know when you want the discussion to be scheduled.


1. Please submit the ‘TO-BE’ process diagram for sign-off today. Also, let me know when can we complete the process documentation ?


I agree with you. My point is that there will be no regular employees for the night shift’