Product Costing

This module links with the Bills of Material module for manufactured products, and enables management to have real control over material and departmental costs and profitability levels.

The Product Costing Module covers the following aspects;

Finished Goods Product Costing: Comparison of sales price against a calculated cost price comprising of material costs, labour costs and overhead costs. This will result in the calculation of a gross margin percentage. The sales price can be amended until the required gross margin is obtained

Variance Reporting: A series of reports calculating the quantity and price variance between actual production usage and standard usage of all products at all levels is available for all Bill of Materials, including Raw Materials, Sub Recipes and finished Products

Features and Benefits

• Ensure products are built to appropriate designs and specifications with effective Bill of Materials version control - Optimise Customer Satisfaction and reduce product recall.
• Manage Product Manufacture/Assembly with Multi-levelled BOM's - Reduce User interaction required to schedule sub-components for Manufacture and Purchase.
• Capture all associated costs accurately - Ensure that goods are sold are profitable margins.

Multiple labour departments and overhead categories, each with its own hourly/unit cost rates. For each Product, Labour and Overheads are entered for the manufacturing UOM (as opposed to the Stocked UOM) and rolled up to provide a complete final cost of the finished product.

All costs of the intermediate level products are rolled up into the final product - no matter how many levels of bills may be involved.