Production Order Costs

Firstly, apologies if this has been asked before but despite searching the guides and forum I haven’t found anything that quite answers my question. I’ve been playing with Production Orders in a test database to see if they work better than inventory kits for what I want to do. I’ve created a couple of inventory items and the associated Production Orders and although I can see I have 1 item on hand with a sales price listed against it (which I added during creation of the inventory item), I don’t see a production cost for the kit i.e. the associated purchase price of each component. My inventory items have all reduced to create the Production Order but I’m not sure how the cost of the items has been treated. Am I missing something here? Does Manager allocate cost as COGS once the item has sold? Please advise. Many thanks.

Did you add the components via a Purchase Invoice so they have actual costs to be picked up. In the following example the two components are purchased, then a production order is made with 2 x component a and 1 x component b which results in 1 x kit with a cost of 40 (2x10 + 1x20)

Extract from Purchase Invoice

Extract from Production Order

Resulting in the Inventory Items listing having the Kit Product with a cost of 40

Yes, COGS are directly related to Sales

It appears that you need to click on the missing screenshots to see them

Sorting out the up load problem
Uploads are displaying correctly in the view panel next to the reply panel, but on saving the reply the screenshots are flashing up but then disappearing. Have deleted the original files and re-created the screenshots - but still the same result. Tried placing the screenshots into this reply - but same result

Hi Brucanna,

Yes, all the components in the Production Order were taken on as invoiced items and I would have expected them to calculate exactly as you describe. I can see all the columns as per your second image and Manager has calculated the average cost. I think the confusion has arisen due to the fact my database also shows the Purchase Price column and I was expecting this to be completed but, given that Manager works on Average Cost valuation for stock then what its showing makes sense looking at your example (minus my the additional column).

With regards to the COGS question, given my confusion, I thought perhaps Manager only calculated the Production item costs after the item was sold, clear misunderstanding on my part on how this module worked.

Interestingly, when I clicked on the images I could still open them but just not see them on the screen.

Thanks for getting back so quickly, much appreciated.

You will get the purchase price column, if you enter a value in the purchase field during the creation of the Inventory Item