Manufacturing order costs

Use Production costs to compare planned cost with the cost recorded on the shop floor. Bold breaks down each order into materials, labor, machine, total and cost per unit.

Data you can review

Section	What it includes
Planned quantity	Planned order quantity.
Planned cost	Labor, materials, machine, total and cost per unit calculated from the recipe and planning.
Completed quantity	Quantity recorded as produced.
Actual cost	Labor, materials, machine, total and cost per unit calculated from actual consumption and time records.
Operations	Details by operation to locate the variance.

Before analyzing an order

For planned-cost comparisons, check the planned operations and materials. A recipe can provide this data.
Actual material consumption must be associated with a lot.
Completed production must be recorded.
Labor time must be assigned to employees with an hourly cost.
Resources or machines must have an hourly cost when you want to allocate machine cost.

Analyze variances

Open the list

Go to Costs and open Production orders.

Filter the order

Search by MO code or manufactured item. Sort by actual cost per unit to identify variances.

Compare planned and actual costs

Review planned quantity, completed quantity, planned total cost and actual total cost.

Open the order

Open the order’s Costs tab to see the breakdown by operation.

Review the operation, materials and labor

If a variance is concentrated in one operation, open it and review consumed materials, employee hours and machine cost.

How it is calculated

Cost	Planned source	Actual source
Materials	Recipe materials and planned item cost.	Consumed materials and the cost of the consumed lot.
Labor	Planned time and planned or average hourly cost.	Recorded time per employee and their hourly cost.
Machine	Planned duration and resource hourly cost.	Actual machine time and resource hourly cost.
Cost per unit	Planned total cost / planned quantity.	Actual total cost / completed quantity.

Example

An MO plans to manufacture 100 units with €300 in materials, €120 in labor and €80 in machine costs. Planned total cost is €500, or €5.00/unit. During execution, more materials are consumed and 95 units are completed. Actual cost reaches €570, or €6.00/unit. In this case, review:

Materials with an actual quantity greater than planned.
Lots with a unit cost different from the planned cost.
Operations with more recorded hours.
Machines with an actual duration greater than planned.

Common problems

Problem	What to review
Actual cost is zero	Consumption, time records or completed production are missing.
Unexpected material cost	Review the consumed lot and its cost per unit.
Planned labor differs from actual labor	Planned cost uses planning; actual cost uses employees and recorded time.
Very high cost per unit	Check whether the completed quantity is lower than planned.
You cannot see production costs	Review production cost permissions.

​Data you can review

​Before analyzing an order

​Analyze variances

​How it is calculated

​Example

​Common problems

​Related