POLICY & PROCEDUREMANUAL
/ Effective Date:
Jan. 23, 2013 / SECTION: 13
POLICY NO: 13.6
PROCEDURE: 13.6
SUBJECT:

Bench Log Sheet Procedure

/ Cancels Previous
Policy Dated:
New / Page 1 of 3

Policy Statement

This policy provides direction with respect to inventory adjustments pertaining to bench logs with or without a labour component.

Procedure

No labour component – Regular bench logs:

The total cost adjustment for a bench log sheet with no labour component must equal zero regardless of the selling price of the finished product. Note that you did not purchase any inventory; you only modified your existing inventory thus the value cannot increase or decrease.

Labour component – manufacturing orders: (Currently only Regina)

On rare occasions, we may need to use the bench log process to build up an item for stock, using other items from stock, as well as shop labour. We will refer to these as Manufacturing orders in these cases, but will use the same form with a slight modification to the procedure.

The total cost adjustment for a bench log sheet with a labour component is equal to the cost of the labour and shop supply component that you allocate to this finished product.

Process

Numerical sequenced bench log sheets are to be completed by listing all part numbers and quantity of items removed on the left hand side of the sheet and listing the components added to the inventory on the right hand side of the sheet. The clerk will input these build sheets as per the instructions below:

  1. Open IMS120
  2. Enter the offset account number which is the inventory account and in most cases will be 1201 (Parts inventory). Select inventory adjustments when prompted.
  3. Enter the part number of the first item taken from inventory
  4. Type in “M” for more
  5. Field 2 type in A-
  6. Field 3 Reference is the Bench log number
  7. Enter the quantity you are removing and accept the costs from the system. Accept all default for all fields and type “F” for finish at the final prompt of the screen and the extended cost of the line item flags up on the screen. Manually write the extended cost on your bench log sheet and then hit enter (A new bench sheet form has been designed which now includes pricing columns. This form is available on the CTEC Intranet. When printing batches of this form, in “page setup” , enter the next page number following the last number used, to start a new series of page numbers ).Continue entering all parts taken from inventory and manually record the extended G/L and LC costs onto your bench log sheet. Note that the bench log reference number will default until you change it for a new bench order.
  8. Now enter the goods that were added to inventory by following the procedure in item 7 but instead using A+ in field 2. Again the final prompt of the screen you would type “F”. You will have to hit F12 in order to get back to the part number line. Accept the Parts Master costs of all the smaller pieces recorded on the bench log sheet and manually record them in the appropriate columns. The main component of your bench log sheet (Example: PTO) will be given the remaining value. If you took out $600 worth of goods as A- adjustments and added back small pieces totaling $50, the PTO would have an A+ adjustment of $550. The total build sheet now reflects a zero dollar transaction. As you exit out of IMS120 you will be shown a batch total which can confirm that the value of your adjustment is zero.

Manufacturing orders:

If you are preparing a manufacturing bench sheet which includes labour of $50 and shop supplies of $5, your bench log should amount to an increase to inventory of $55. Follow the instructions above but also send an email to Angie Veinott, requesting a journal entry of $50 labour, $5 shop supplies with a reference of the bench log sheet. When you exit out your adjustment value would record a total of $55 positive.