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Order costing accumulates and reports costs as they flow through the system. It helps you analyze costs in job orders and inventory and transfers them to the general ledger. Costs from material transactions, including purchasing and receiving, are transferred to job orders and inventory. Order costing can also record unplanned material and miscellaneous costs.
Made2Manage’s cost roll-up performs a mass update of average or last-actual costs from BOMs, work centers and routings to parts. The roll-up updates cost information in the item master and appears on various reports. This process also recalculates the material, labor and overhead costs of any parent part from its components.
Order costing supplements activities that happen elsewhere in the system, including posting costs and adjusting work in process (WIP). Posting costs adds unplanned expenditures or purchases not listed on a BOM to the cost of an order or job. Adjusting WIP moves costs between WIP and cost of goods sold. This posting lets you adjust for situations such as long-running jobs with several dollars in WIP, partial shipments of an order, and accounts payable invoices that exceed the purchase order price. |