Standard production costs for work centers¶

The standard production cost plays a crucial role in providing businesses with a comprehensive understanding of the production expenses associated with manufacturing a unit product. By determining the standard production cost, businesses can estimate the expenses involved in the production process and make decisions regarding pricing, profitability and resource allocation.

Requirements

This tutorial requires the installation of the following applications/modules:

Inital Configuration¶

Navigate to Manufacturing > Configuraion > Work Centers, press New to create a new work center or you can choose an existed work center to set up:

In the General Information tab, you can configure the standard costs for each work centers:

Cost per hour: Input the standard amount for:
- Per workcenter: Input the amount that represented for the costs of depreciation equipments, the energy costs, the general management costs, etc.
- Per employee: Input the amount for each person who worked in this workcenter. This amount could be an average of the team.

You also can choose the type of costs that these amounts will display on production cost report.

Besides, you can navigate to Manufacturing > Configuraion > Operations to set up the number of team that worked for the operation at the Employee Capacity field.

Apply to manufacturing order¶

Once done, you can run the manufacturing process. Please refer to this article Manage Manufacturing process in Viindoo.

Note

The standard cost is set based on the worked hours of the production order. So, whenever you record the spent time for each manufacturing order, you can analyze their costs.

Production cost analysis¶

After finishing, you can access to the Cost Analysis in the manufacturing order view to see the costs:

Or you can navigate to Accounting > Reporting > Production Cost Report to see the production cost report: