...
You can create a Costing document either by using the "Generate" option based on existing Production documents or by manually creating a new one manually. When using the "Generate" option, all details will be automatically filled in , except for the Cost tab, which must be completed manually. If you choose to create the document, all information across the tabs must be entered manually.
In the Main tab, fill in the Department field , choose with the team or unit that made produced the items.
In Enter the start and end dates in the From and To fields, enter the start and end dates
In .
Use the Comment box , you can write to add any extra notes or details.
The Finished Goods tab displays the list of manufactured items you want to assign costs to.
Typically, this list is filled automatically using the Fill by Production option, which pulls data from Production documents (with the Assembly type) posted within the date range set in the Main tab, or from documents used as the basis for this Costing document.
You can also add items manually, such as those resulting from a Disassembly process.
The Inventory tab provides details about inventory items or raw materials used to produce the finished goods, including additional materials not listed in the product specifications and how these materials are distributed across the finished goods.
This tab is usually filled manually, especially when listing indirect material costs like tools, extra raw materials, or other items used in production beyond what's defined in the specifications. These costs are then allocated to the cost of the finished goods.
Inventory Items Table
Shows all items used in production, even those not in the product specs (like tools or extra materials).
These items are linked to the Work-in-Progress (WIP) account.
You can add them manually or use the Fill button:
By Standards: Adds items from the specs; you can add extra ones if needed.
By Balances: Adds items based on what's in the WIP account.
...
Inventory Distribution Table
Shows the finished goods (from Assembly or Disassembly) that used the materials listed above.
The Costs tab displays non-material (indirect) costs recorded in the Work-in-Progress or other specific GL accounts across the related documents. These costs are then distributed to the finished goods based on their quantities.
The tab includes two tables:
Upper Table – Lists the indirect costs.
Lower Table (Costing Table) – Shows how each cost is distributed across the finished goods.
You can verify the added costs using the Statement of Account and by referencing the Work-in-Progress GL, as shown below.
If there is more than one finished good, add the cost and then use the Distribute by Quantity option.
Once all details are filled in and checked, post the document. It will create the following entry:
Debit: Goods
Credit: Work in Progress - Main Production
The user can check the Balance of Inventory report from the Purchase module to understand how the cost value is added to the production cost, which then increases the cost price of the item.
For our example, AED 2,000 has been added, increasing the cost of the item to AED 2,472.50.
Thanks for being Firstbit Customer! #ProductionCost#FinishedGood#WorkInProgress#CostDistribution#IndirectCosts