Inforln.com ERP LN 10.3 & 10.4 MAUC Hours Differences

1Copyright © 2013. Infor. All Rights Reserved. www.infor.comCopyright © 2013. Infor. All Rights Reserved. www.infor.com 1
LN: v10.3 to v10.4 Moving Average Unit
Cost (MAUC) Hours Differences
LN 10.4 Rollout Training
Campus course code:02_0021040_EEN0433_ELN
June 2014
Patrick Noblett, Business Analyst, patrick.noblett@infor.com

2Copyright © 2013. Infor. All Rights Reserved. www.infor.com
Intended Audience
• Pre-Sales
• Consulting
• Support
• Pre-requisites to know:
• The concepts of Moving Average Unit Cost (MAUC), Last in First Out (LIFO) and
First in First Out (FIFO) from industry perspective
• How LN handles actual costing methods such as Moving Average Unit Cost, Last
in First Out (LIFO), and First in First Out (FIFO).

Agenda
• Why – Moving Average Unit Cost (MAUC) Hours
• Big Picture
• Business Requirement
• Business Problem
• What
• Solution Overview
• Solution Details
• Summary

Big Picture
• Aerospace &Defense (A&D) companies work in a project based environment
• A&D companies work with actual costing methods such as Moving Average
Unit Cost (MAUC) for valuation of the items they make for customers
• Actual costing helps to better compare costs to budgets for profitability of a
project
• Labor hours are tracked on projects and budgeted on projects.
• Each project that makes something will have its own MAUC or project MAUC
(PMAUC)
• Projects tend to share inventory or transfer excess to other projects.

Business Requirement
• A&D companies need the hours and the inventory value of an item.
• The hours need to move from the project that made the item to any project that
ultimately gets the item (via transfer of project ownership).
• Hours are captured and stored for the items that are delivered to the end
customer (a government agency)
• Pegged Items
• Need to capture hours (internal to the company) that made a pegged ite
• Do not need production subcontracting hours (these are external)
• Have the hours roll into another Bill of Material Level
• Non-Pegged Items
• When making non-pegged items, the hours need to be tracked
• Have the hours roll into another Bill of Material Level

Business Problem
• No production hours associated with an item’s value means, when an
item is moved to another project, the new project :
• Applies incorrect overhead (total project costs are wrong)
• Bills customers incorrectly (customers get invoices based on bad information)
• Incorrectly track project progress based on hours correctly, leading to overruns
and projects out of control
• Ultimately incorrect project profitability leads to incorrect company profitability

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Solution Overview - MAUC
Hours

Software Requirements
• Retain Production Hours as part of the warehouse value (Project MAUC
(PMAUC), MAUC, Last in First Out (LIFO), First in First Out (FIFO), Fixed
Transfer Price (FTP))
• New field called Moving Average Unit Hours (MAUH)
• Allows transfer of hours and costs between projects (which happens often)
• Allows (re) calculation of overhead costs based on hours invested
• Allows Projects to bill based on hours when appropriate (Time and Material or Cost
Plus Invoicing)
• Production Orders costing has to incorporate and pass the hours into
Warehousing, Finance and Project
• Extend internal Work In Process

Actual
Hours =5
per piece
Actual Hours
=28.5 per piece
Actual Hours =1222.25
per piece
Total Actual Hours
=1222.25 per piece + 38.5
from issued mfg per piece
=1260.75
Total Actual
Hours =5
per piece
Total Actual Hours
=28.5 +10 (2x5)
from issued mfg
per piece = 38.5
Total Hours for
End Item
Production – Hours roll up like costs
into End Items

Orders Impacted
• Production Order
• (non-pegged)
• (pegged)
• Production hours variance
• Revaluation Orders
• MAUC Correction by Item
• Actual Costs Correction
• Cost Peg Transfer
• Inventory Adjustment/Cycle Count Orders

Production Orders
• Manufactured items will be issued with ‘production hours’
• Use standard cost price ‘unit hours’ when manufactured material has FTP valuation
method
• Most all procedures related to costing is touched:
• Hours booking
• Issue Handling
• Receipt Handling
• Close Order (Variance Calculation)
• Pegged and Non-pegged Items included

Cost Peg Transfer – Prior to 10.4
Project A Project B
Costs
Hours
Soft Pegged

Cost Peg Transfers – 10.4
Project A Project B
Costs
Hours
Soft Pegged

MAUC Hours Parameters
• Implemented Software Components (Concepts (Logistics))
• Hours in Costing (this to show them or not on various sessions).
• Other parameters to consider
• Inventory Handling Parameters (Receipts Tab)
• Default Inventory Receipt Value
• Standard Cost (Always takes standard hours)
• Inventory Value (Will take inventory value to determine hours)

Sessions containing MAUC Hours
• Inventory Receipt Transactions (whina1512m000)
• MAUC by Warehouse Valuation Group (whina1534m000)
• Inventory Consumptions (whina1514m000)
• Inventory Variances (whina1516m000)
• Item Lot (whltc1100m000) and Lot Cost Details (whltc1501m000)
• MAUC Correction by Item (whina1231m000)
• Actual Cost Correction (whina1230m000)

MAUC by Warehouse Valuation Group
(whina1534m000)

MAUC Correction by Item
(whina1231m000)

Summary
• Big Picture – A&D companies need hours in the value of items for project
management, overhead application and invoicing
• Solution – MAUC Hours added to inventory costing
• When inventory (happens often) is moved from one project to another the costs
and hours can move
• Take some time to review this for yourself

Inforln.com ERP LN 10.3 & 10.4 MAUC Hours Differences

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