> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bold-factory.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Prepare cost data

> Complete prices, costs, time records and operational records before analyzing variances or inventory valuation.

Prepare cost data before interpreting variances. Cost analysis depends on complete master data and consistent operational records.

## Base data

<Steps>
  <Step title="Review items">
    In **Catalog > Items**, open each item and review **Planned total cost per unit** on the **Costs** tab. Complete it when you maintain the cost manually.

    In the planning view, also define the procurement source and stock rules.
  </Step>

  <Step title="Review suppliers and purchases">
    Keep prices, orders and receipts up to date for purchased materials.
  </Step>

  <Step title="Review employees">
    In **People > Employees**, open each employee and complete **Hourly cost** in **Information** if you will include their time in the calculation.
  </Step>

  <Step title="Review resources">
    In **Manufacturing > Resources**, open each workstation and configure its costs on the **Costs** tab if they should contribute to actual cost.
  </Step>

  <Step title="Review recipes">
    Ensure inputs, quantities, time and outputs are consistent before manufacturing.
  </Step>
</Steps>

## Records to review during cost analysis

| Record | Impact |
| - | - |
| Purchase receipts | Contribute the cost of purchased materials. |
| Manufacturing consumption | Determines the materials actually used. |
| Completed production | Distributes cost over manufactured output. |
| Operation time records | Contribute labor or resource cost. |
| Rejects and scrap | Explain quality or performance variances. |
| Stock counts and adjustments | Correct stock, but need clear justification. |

<Warning>
  If consumption, time records, prices or lots are missing, actual cost may give an incomplete picture. Review traceability before making decisions.
</Warning>

## Before comparing planned and actual costs

<Steps>
  <Step title="Select the period">
    Analyze a range with closed operations and recorded receipts.
  </Step>

  <Step title="Exclude incomplete data">
    Review open orders, partial receipts or pending stock counts.
  </Step>

  <Step title="Check large variances">
    Check whether they come from price, quantity, time, rejects or stock adjustments.
  </Step>

  <Step title="Document the cause">
    Add operational comments when a variance has a real explanation.
  </Step>
</Steps>

## Related

* [Theoretical cost vs actual cost](/en/concepts/costs/planned-versus-actual-cost)
* [Analyze item costs](/en/guides/costs/analyze-item-costs)
* [Configure employee costs](/en/guides/costs/configure-employee-costs)
* [Manufacturing orders](/en/guides/costs/manufacturing-order-costs)
* [Work orders](/en/guides/costs/work-order-costs)
* [Inventory valuation](/en/guides/costs/value-inventory)


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