MANUALS > G/L Interface > G/L Interface Module > G/L Interface, Update Menu > Journal Entries Expenditure > Configuring Expenditure Codes > Expenditure Class - FLAT RATE MATERIAL

The FLAT RATE MATERIAL Class will appear only when a Third Party Work Order is attached to a Customer Contract that is a 'Material Flat' category and has a Sell Amount. The transaction takes place by creating a Manual Issue for a part. The Flat Rate Material charge will appear against the G/L when the Third Party Work Order is closed.

For example, create a Work Order with the Third Party checkbox selected.

After saving, the Customer Orders window will appear. Enter all relevant information.

From the W/O Sell tab, enter the Contract Number for the previously created Customer Contract. Select the Save button to save.

Note: For the Flat Rate Material charge to appear after the W/O is closed, the Customer Contract must be a 'Material Flat' Category and have a Sell Amount listed.

Find a P/N with an assigned cost via Inventory Transaction then select the Manual Issue button.

Enter the Third Party W/O number and a previously assigned W/O Task Card. The W/O Task Card must be assigned from the Work Order window by selecting the Task Card button or the Non-Routine Task Card button. Save the Manual Issue.

From the Journal Entry Detail Query window users can see the adjustments made against the G/L.

For more information on Third Party Work Orders and Customer Contracts, refer to the topics Third Party Button and Customer Contract via the Production manual.

Third Party Work Order Closing:

Through the Work Order Closing process the Flat Rate Material fee is charged against the 'SALES' and 'ACCOUNTS RECEIVABLE' accounts. Both charges are then added and reversed into the 'COST OF SALES' account. (See notes at the bottom of the topic).

Note: The amount of the Flat Rate Material charge against the G/L comes from the Sell Amount listed in the Customer Contract. (In this example, the Sell Amount is 25.85. When the 'SALES' and 'AR' accounts are added together the sum of 51.70 is reversed into the 'COST OF SALES' account.)

Notice the J/E Expenditure Class fields read 'FLAT/RATE/MAT'.

For more information on the closing of a Work Order, refer to the topics Work Order Closing and Work Order Closing Post Completion via the Production manual.

Note: Refer to G/L Interface Switch JETPWSAL for more information regarding the Accounts Receivable account. When set to Yes, the AR account will NOT be charged at Third Party W/O Closing. When set to No (as in the examples above), the AR account is charged. Users must also perform the Customer Invoice Authorization. For more information refer to the topic Customer Invoice Authorization via the Production module.