Production Period

You have to create the production period every beginning of month for calculate cost of production in the ending of  month, To define the period go to Main Menu → Manufacturing → Production → Production Period

• Click New Production Period and Enter details the form

• Number : The number of period ( The number will filled automatically)
• Date From - Date To : Enter the date of the beginning and the ending
• Description : Enter the Description of Costs of production
• Period Actual Amount : Enter the actual amount of Costs of production in period
• Average Method : The method to average costs, there are as follows

• Number of Order : The cost of production divided by the total number of production order
• Finished Goods : The cost of production divided by the summation of received finished good
• Operation Time : The production cost divided by the summation of the production time (minute)
• Selling Price : The production cost divided by the summation of the price of sale

• Cost Type : The type of costs, There are as follows

• Overhead
• Consumable
• Repair

• The production orders in that period will appear below the form.

• Enter the actual cost when cost of production comes, If the production period was finished you can allocate cost each production order by clicking on Update Period Costs button.

• With the Costing Tab in Production Order, It will appear description of cost you was allocated.

• The cost of production will allocate by average method in that period

Example Average Methods

Average Method : Number of Orders 

This method is calculated by using the cost of production divided by the total number of production. that will be the cost for each production in the specific period.

        An example : The production period have 3 production orders. The cost each order is 300/3 = 100

Average Method : Finished Goods

This method is calculated by using the cost of production divided by the summation of received finished good . that will be the cost for each production in the specific period.

An example :  The production orders has received a finished good. The cost each finished good is 300/1 = 300

Average Method : Operation Time

This method is calculated by using the production cost divided by the summation of the production time (minute). that will be the cost for each production in the specific period.

An example : there are have 3 production orders, It took 180 minutes to produce. You can check the duration time in Operations tab of production order. And the cost per minute will be  300/180 = 1.667 THB

In the production order above, it took 30 minutes to produce. That’s mean the cost of production is 30 x 1.667 =  50 THB

Average Method : Selling Price

This method is calculated by using the production cost divided by the summation of the price of sale. that will be the cost for each production in the specific period.

In this case the product for sell have to make to order and production

        *You can define the price of sale with the Pricing tab in product menu, Following

An example there are have three orders as follows        

• Ordering HP-13t to produce 1 Order (The price of sale of product is 45,000 THB)
• Ordering DMFGZ4070 to produce 2 Orders (The price of sale of product is 35,000 THB)

To average cost is 300/(45000+35000+35000) = 0.002608695 per 1 THB(Price of sale)

•  that will be the cost for each production in the specific period.
• The HP-13t will have the cost of production is  117.39 THB (45,000 x0.002608695)
• The DMFGZ4070 will have the cost of production is  91.305 THB (35,000 x0.002608695) per Order.