Cost of Work Order
Cost of Work Order shows what a production run cost beyond its materials — the overhead and labour added to it. Those figures are what turn a pile of issued components into a finished item with a real cost, and they are what standard cost, average cost and selling price are all calculated from.
Where to find it
Go to Manufacturing > Costs, or open the Additional Costs tab on a work order.
Where the cost is entered
| Work order type | Where costs go in |
|---|---|
| Assemble | On the work order itself, as Labour Cost and Overhead Cost. |
| Advanced Manufacture | Through the Produce screen as the run progresses. |
This page is a view of what was entered. It is not where costs are typed in.
Field reference
| Field | Description |
|---|---|
| Date | When the cost was recorded. |
| Type | Labour, overhead or another additional cost. |
| Reference | The cost document's reference. |
| Credit Account | The account the cost is taken from. |
| Memo | What the cost was for. |
| Additional Cost for WO | The amount added to the order. |
General Ledger
Every cost here is tied to the ledger. The credit account is where the money comes from — a wages account for labour, an overhead account for the rest — and the value lands in the work order, ready to be absorbed into the finished item.
Costs left off the order do not disappear; they simply do not reach the product. The finished item is then valued at materials only, which makes it look more profitable than it is and quietly distorts every margin calculated from it.
What the cost is used for
- Standard cost — the expected cost of making one.
- Average cost — the running valuation of stock on hand.
- Selling price — calculated from cost by a ratio, if you price that way.
Related pages
- Work Order View — the parent order
- New Work Order — where Assemble costs are entered
- Work Order Production — where cost meets the finished item
- General Ledger Inquiry — the postings