View Total Cost Report
The “Total Cost Report” tab appears in the tabs of the manufacturing order as soon as it is saved. This report includes calculations for costs related to raw materials, their returns, direct and indirect costs, as well as costs resulting from manufacturing processes and scrap items.
You can also manage the cost report and its format through “Manufacturing Reports” under “Reports” in the main menu.
This guide provides an overview of the Total Cost Report and explains the columns and details it represents.
Viewing the Columns and Items of the Total Cost Report
The Difference Between Actual Cost and Estimated Cost
Throughout the Total Cost Report, each cost is recorded twice: once in the “Estimated Cost” column and once in the “Actual Cost” column. So, what is the difference between them?
- The Estimated Cost column (Est. Cost) represents the costs generated from the Bill of Materials (BOM) selected in the manufacturing order. All items from the BOM, including expenses and manufacturing operations, appear in this column, even if some of these items were deleted within the manufacturing order. However, the amount displayed for each item is calculated based on the quantity of the final product in the manufacturing order, not the quantity in the BOM.
Therefore, you may notice that the cost of a raw material or an expense differs from its value in the BOM, as the costs are tied to the required quantity of the final product in the manufacturing order.
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The Actual Cost column (Act. Cost) represents the actual costs incurred by the manufacturing order’s entries. There is a specific consideration for raw materials, as they must first be received from inventory to be accounted for in the actual costs. If the Bill of Materials (BOM) includes items that were removed from the Manufacturing Order, the cost of these items will appear as zero in the Actual Cost column.
If a production operation is assigned to the expense in the Manufacturing Order or Bill of Materials (BOM), this operation will appear alongside the expense in the “Production operation” column.
For more information about the production routings and production operations, refer to this guide.
If no Bill of Materials (BOM) is added within the Manufacturing Order, the value of all items in the Expected Cost column (Est. Cost) will be zero.
After opening the desired Manufacturing Order, click on the “Total Cost Report” tab. Here, you will see the “Received Materials,” which are the raw materials included in the Manufacturing Order with their specified quantities. This section will not appear in the report unless the raw materials have been received.
If you have returned some raw materials, another section will appear in the report, labeled as “Returned Materials.”
Next, you will find the “Direct Expense” items, which are calculated based on the cost type specified in the BOM and the final product quantity defined in the manufacturing order.
- As shown in the image below, some direct expense items appear with a zero value in the “Actual Cost” column while their values are present in the “Expected Cost” column. This happens because these costs were removed from the manufacturing order despite being added to the BOM.
Following that, you will find the “Indirect Expense” items, where the expense amount appears only in the “Actual Cost” column.
- Indirect costs are allocated to manufacturing orders and are not included in the costs calculated within the Bill of Materials (BOM). Therefore, they appear as zero in the “Expected Cost” column, as shown in the image below.
Next, the “manufacturing operations” costs and “scrap items” are displayed, which result from all the workstations added in the Bill of Materials (BOM) and the manufacturing order.wdcx
Finally, the total expected cost and the total actual cost for the entire manufacturing order are shown.
The initial and actual cost displayed in "Details" tab
In addition to the Total Cost which you can access by clicking on the “Total Cost Report” tab within the Manufacturing Order file, there is also the total amount of the initial and actual costs related solely to the Manufacturing Order, excluding the Bill of Materials. You can view this information by clicking on the “Details” tab within the Manufacturing Order file.
At the end of the “Details” tab, you will find the total “Initial Cost,” which matches the “Actual Cost” in the “Total Cost Report” column. This represents the manufacturing order cost, provided that raw materials have been received to account for their cost. Until the raw materials are received, their cost is deducted from the initial cost.
On the other hand, the “Actual Cost” in the “Details” tab represents the total cost of the manufacturing order, including the cost of raw materials, even before they have been received.
In the following image, the initial and actual costs for a manufacturing order are displayed after clicking on the “Details” tab before receiving the raw materials.
The image shows the following:
- Total raw materials cost: $600
- Initial cost: $500
- Actual cost: $1100
As explained earlier, once the raw materials are received, the initial cost will update to $1100 after adding the raw materials cost.
Viewing Cost Reports from the Manufacturing Reports
To view the manufacturing reports for all your Manufacturing Orders or to control how the reports and data are displayed, click on “Manufacturing Reports” under the “Reports” dropdown in the main menu, then select “Manufacturing Order Costs.”
When you click the “Show Report” button, the cost reports for all manufacturing orders will be displayed, following the same structure as the “Total Cost Report” you view from the manufacturing order screen. Using the search and filter tools, you can refine the report to focus on a specific time period, a bill of materials, or even particular group cost items instead of displaying all items.
After configuring the cost reports as desired and displaying them by clicking “Show Report,” you can then click “Print” to print the report or “Export” to download the report file in your chosen format.
