Process Cost of Manufacturing Orders

Process Cost Configuration

Go to Manufacturing -> Configuration -> Settings . User can select manufacture process costing method as 'Manually' or 'Work-Center'.

1.Costing Method Manually

After setting the process costing method 'Manually', the user can go to Products -> Bill of Materials . Create a Bill of Materials

You can add the components. Then the Material Cost is added automatically based on the components.

Then Add the Operations.

Then the Labour Cost is added automatically based on the operations. Also, you can add the Cost/Minute manually.

Also, Overhead Cost is added automatically based on the operations. You can add the Cost/Minute manually.

In the Costing page the values are computed automatically based on the Material Cost, Labour Cost and Overhead Cost.

Now go to Operations -> Manufacturing Order and create a new Manufacturing order. By setting the Bill of Material, all the datas from corresponding BOM will be loaded here. You can also add Components and Work Orders, and it will reflect in other costs but not in the actual BOM.

Here you can see the Work Orders. Plan the manufacturing order.

Then you can go to Material Cost, Labour Cost and Overhead Cost tabs and change the Actual quantity and Actual Minute manually.

In the Costing tab, you can see both estimated cost and actual cost calculated.

2.Costing Method Automated Work-Center Process

For costing method automated process go to Configuration -> Settings and enable the Work Orders Feature and also set the Process Costing Method to 'Work Center'.

Then go to Configuration -> Work Centers. Add the Actual Costing

Then go to Products -> Bill of Materials and configure the Components and Operations.

Then the estimated Material Cost, Labour Cost and Overhead Cost will be calculated automatically based on the Work Center.

You can also see total cost of Material, Labour and Overhead.

Now go to Operations -> Manufacturing Order and create a new Manufacturing order. By setting the Bill of Material, all the datas from corresponding BOM will be loaded here. You can also add components and work order, and it will reflect in other costs but not in the actual BOM. Now you can confirm the manufacturing order and plan and start the work-order.The work order Real Duration is reflected on the Labour and Overhead Actual Minute. Also, the Material Actual Quantity is coming from the components.

Under the costing tab you can see all the estimated cost and actual cost.

Cancel Reason for Manufacturing Orders

When you cancel a Manufacturing Order, a popup wizard appears, and you could provide a reason for canceling and cancel it.

Under Configuration -> Cancel Reasons , you can see all the reasons for canceling the Manufacturing Order.

Bill of Material Report

You can print the Bill of Material Report from the BOM menu itself.

Manufacturing Orders Report

You can print the Manufacturing Order Report from the Manufacturing menu itself.