Production Cost of Finished Goods

How to find production cost report in Cloud Version?

There is no “production cost report.” But you can drill down by clicking on the Inventory on hand account on the Summary page. Then click on the balance for the inventory item. You will see a list of all transactions contributing to that balance, including production order costs.

You could also create a custom report for the cost of production orders.

The latest version (20.7.35) adds Amount column to production order view screen. This will allow to see how much cost each input item on production order has contributed the output item cost.

@lubos, this is a welcome development and a good step in the right direction. However, apart from seeing the total amount of contribution to production, It would be better to see also the average cost per unit of materials in this production order. Apart from that, we need to see also the units of measure in the quantity column. Otherwise its a good development.

after the last update, i take the following

and if you drill down to the “Total Cost”, which should be 0,00, you take the following

I cannot understand

@pandhm this is because if production order contains input items which are not yet in the stock, there will be negative inventory situation where production order will be progressively putting costs to output inventory item as they are becoming known.

If the sale happens before all the costs of production order are calculated, the sale cost will be lower because future costs are not yet known. And even if they become known, it would be unacceptable accounting practice to retrospectively change historical transactions based on future transactions.

I’m currently rethinking the whole concept of production orders and how to make it work properly. The current implementation doesn’t work well if there is negative inventory state. Just to clarify - this problem was always present in Manager… it’s just that older versions were masking it in various ways.

@pandhm This issue is being addressed. Upgrade to the latest version and check this topic.