How a build is costed
A finished unit is costed from what was actually issued into the build, not from what the BOM estimated it would take.
Planned cost versus actual cost
Compare the expected cost with the cost of material issued.
| Where it comes from | Answers | |
|---|---|---|
| Planned | Unit costs frozen when the order was created | What we expected this build to cost |
| Actual | The cost of the stock that actually left | What it did cost |
The planned cost is saved when the order is created. Later price changes do not affect it.
Actual cost comes from the issue
When material is issued to a build, the movement records what that stock was worth at the moment it left — the value of the specific lots picked, not a current average or a BOM estimate.
This recorded value is charged to the build.
Each receipt is costed separately
A build of 100 finished in three batches produces three receipts, each costed from what had been consumed by that point.
Receipts from the same order can have different unit costs.
What the cost includes
| Included | |
|---|---|
| Material issued | At the value of the lots that left |
| Scrapped material | Yes. It was paid for and lost on this build |
| Reversed issues | Removed — the movement was undone |
Where to view costs
The Receipts tab shows each batch with its cost. The Material tab shows what has been issued and at what value.
A build where actual runs well above planned is usually one of three things: scrap, an overage that was set too low, or material issued that the plan did not call for.
Where the value sits
Before issuing, the value is in the stockroom. After issuing, it is with the work order. After receiving, it is in the finished units.
Material issued to a build remains work in progress until finished units are received.