User Guide: MRP Process Costing With Accounting
Overview
The MRP Process Costing module is designed to streamline the calculation of production costs by providing a comprehensive breakdown of Material, Labor, and Overhead costs. Users can choose between two costing methods: Manual or Work-center Based Calculation. In the manual mode, users input the costs for materials, labor, and overhead directly, ensuring full control over the values. Alternatively, the work-center-based option automatically calculates costs by leveraging pre-configured rates and parameters in the work centers, such as labor rates, and overhead allocations. Once the costs are determined, the module seamlessly aggregates them to compute the total manufacturing cost for a production order. This feature-rich module enhances accuracy, reduces manual effort, and integrates effortlessly with Odoo's manufacturing and work-center configurations, making it an essential tool for efficient production cost management.
The MRP Process Costing module not only calculates production costs but also integrates seamlessly with Odoo's Accounting module to provide robust financial tracking. If the accounting feature is enabled, the module automatically generates journal entries for each manufacturing order, ensuring that the calculated costs are reflected in the selected accounts. This includes recording Material, Labor, and Overhead costs against the respective expense or cost accounts, providing a clear financial trail.
Hot Features
◆ Calculates Material Costing
◆ Calculates Labour Costing
◆ Calculates Overhead Costing
◆ Calculates Labour Costing Automatically
◆ Calculates Overhead Costing Automatically
◆ Journal Entry for Total Material Cost
◆ Journal Entry for Total Labour Cost
◆ Journal Entry for Total Overhead Cost
◆ Journal Entry for Total Cost
Features
◆ Calculates Material Cost From Cost/Unit And Quantity.
◆ Calculates Labour Cost From Cost/Hour And Duration.
◆ Calculates Overhead Cost From Cost/Hour And Duration.
◆ Automatic Fetch The Cost/Hour And Duration For Labour Cost From Work Center Configurations.
◆ Automatic Fetch The Cost/Hour And Duration For Overhead Cost From Work Center Configurations.
◆ Allows The User To Choose Whether To Create Journal Entries or not.
◆ Automatically Creates A Journal Entry For Total Material Cost.
◆ Automatically Creates A Journal Entry For Total Labour Cost.
◆ Automatically Creates A Journal Entry For Total Overhead Cost.
◆ Automatically Creates A Journal Entry For Total Manufacturing Order Cost.
◆ User can generate the PDF report for Manufacturing Material , Labour , Overhead And Total Cost.
◆ User Can Configure The Costing While Preparing the Bill Of Material.
Working Flow
- User need to navigate to Manufacturing >> Configuration there user will have a menu Settings.
- User can select the type of calculating the cost Of Manufacturing Order.
- Now user can configure the Bill Of Material with Costing in Products >> Bill Of Materials
- In Bill Of Materials , User can configure the Material Cost in Material Costing Page.
- Similarly, User can configure the Labour Cost in Labour Costing Page.
- Similarly, User can configure the Overhead Cost in Overhead Costing Page.
- User can See the details of costing in Total Costing Page.
- Navigating to Manufacturing >> Operations >> Manufacturing Order to create a new Manufacturing Order.
- By selecting the Bill Of Material user can see the values of Material , Labour and Overhead Costing as per in BOM. Overhead.
- After Creating the Manufacturing Order and Setting Up the values for costing User can see the Actual total Costing and Estimated total costing in Total Costing Page.
- When we set the Work Center Base calculations in Manufacturing >> Configuration >> Setiings.
- Set up the Costs for Work Centers in Manufacturing >> Configuration >> Work Centers.
- In Manufacturing Order , After Selecting the Bill Of Material, It will fetch the cost from Work Centers.
- And show the Estimated Total cost in Total Costing Page.
- After the Completion of the work centers , it will Calculate the Actual Hours for Labour costing and Overhead Costing.
- And Show the Estimated Cost and Total Cost in Total Costing Page.
- In Manufacturing >> Configuration >> Settings Enable the option for Accounting and Configure the Accounts.
- It Will Create the Journal Entries Automatically for Configured Accounts, you can see that in Invoicing >> Accounting >> Journal Entries
- User can Download the PDF report for the Costing details in , action >> Print >> MO Costing Report
