I have created a production order to create a new inventory item that I will sell. I can see the unit price listed in inventory items, but when I click the price, I cannot see how this price was created.
Is there a report that shows the Production Order in more detail, so that I can understand how the pricing is applied? This will allow me to see the details of the pricing and get a better grasp of my costs, without looking up each and every individual sub-inventory item to understand the main inventory item.
I think the short answer is no, to a report that will break down a finished good’s costings. Can it be suggested that you create a Finished Goods Costing spreadsheet. Creating such a management tool would provide greater flexibility in reviewing possible changes in sub-inventory mix, price changes, suppliers etc, rather then a static, after the event report
Thank you for your response. I am currently utilizing Excel to create the cost worksheets, and verifying with Manager. Unfortunately, my main business is spice blends, so you can imagine how tedious of a tasking this could be!
Understand, are using “look up tables” - once set up these can reduce repetitious. Alternatively you could search for a product production program where formulas or recipes could be entered
As you can see, this report seems to be the best place to show the Price per Qty, and total cost for each item in a production order. This is a great place to check and balance the final product cost and ensure everything has been entered correctly, before pricing the item for sale.
I have a different viewpoint. Production orders are internal documents meant to control manufacturing. In many cases, they are completely unrelated to any received purchase order and cannot be connected to any present or future sales order or sales invoice. Instead, they are generated only to replenish inventory levels to desired levels. Furthermore, company management may not wish to reveal cost or pricing information to manufacturing or production personnel. This may be done to protect competitive pricing information from unauthorized disclosure.
Tut - Maybe I am using the program incorrectly. I am utilizing the production order to create a new inventory item, which consists of a group of other inventory items. Is there another way that I could better use the program? Maybe I am better off using excel, but then I won’t have a way to track inventory accurately. Appreciate any insight into my process you can assist with. Thank you
No, they are internal documents used to control “Inventory”. Within the Asset - Inventory on Hand account they handle the accounting transfer of raw material Inventory into Finished Goods Inventory.
Production Orders are just an Accounting Journal and therefore should disclose relevant information. How else can you validate (audit) the costings being used. No other Journals hide their financial details
The only alternative method would be to individually detail all the raw materials and finished goods with their associated pricing within a standard Journal and that would be cumbersome. Production Orders automates that process, perhaps the tab should be more rightfully called - Production Journals.
If the Production Order was also being used to give instruction “to manufacturing or production personnel” then perhaps a pair of scissors could be employed to detach any sensitivities
You have taken up a discussion more than a year old. Many changes to the program have occurred since then. You need to be more specific with your questions.
Please forgive me I was just following previous posts.
Is t a report that shows the Production Order in more detail, so that I can understand how the pricing is applied? This will allow me to see the details of the pricing and get a better grasp of my costs.
As you can see, this report seems to be the best place to show the Price per Qty, and total cost for each item in a production order. This is a great place to check and balance the final product cost and ensure everything has been entered correctly, before pricing the item for sale.
I have a small business and I don’t see a problem adding costs to the production order. Another option is to create a custom report but information on tables isn’t available.
No, there is no report for production orders, only the orders themselves. The pricing of production orders has two aspects:
Input inventory items are priced at their current average cost at the moment the production order is created. These costs are transferred to the output inventory item, but remain within the Inventory on hand control account.
Non-inventory costs are added to the output item’s average cost in Inventory on hand. The balancing entry posts to the account you select when creating the production order. See the example in this Guide: https://www.manager.io/guides/11111.
The combined result shows up in the Inventory Value Movement report under Production Orders. As for sales pricing, the current average cost of the output item shows up in its listing under Inventory Items. This number will change with every purchase as input items are bought at different costs and additional production orders are entered, the same way a purchased inventory item’s average cost changes when you buy it from different suppliers at different prices.
So at any given time, you can determine your total average cost of an inventory item you produced with a production order. Sale price is, of course, up to you.
That “Production Orders are just an Accounting Journal and therefore should disclose relevant information. How else can you validate (audit) the costings being used. No other Journals hide their financial details . . . . perhaps the tab should be more rightfully called - Production Journals”
Unfortunately no, it remains a monetary “value” less journal.
