The cost of sales section within the job summary lists the quantities and value of all material items used or created by the job. Maintaining this accurately will also ensure that stock counts within the system are correct.
Material items consumed by the job are shown as negative values, finished goods items created by the job are shown as positive values.
How are Items Added?
The recommended workflow to account for material items used in production is as follows
- Ensure that the recipe contains all material items needed for the job
- Commit the material items at the time the job is released to the factory - this will ensure that (subject to the jobcard format used) that the expected material usage for the job will be printed on the jobcard
- During actual production staff record variances from the detailed listed on the Jobcard - for instance they may find that they require more than the listed quantity, or need to used additional materials that are not listed.
- When the job is reviewed, the materials list is modified to match the exact quantities used in the job
If this process is followed then cost of sales figures and inventory counts will be correct.
Reviewing & Modifying The Items
The materials items list is contained on the cost of sales tab of the job review screen
- If there are no values on the list then the materials have not yet been committed - press the button (2) to commit items from the recipe to the job.
- Modify quantities consumed with the job by changing numbers (3) - not that materials consumed are entered as negative values
- Add additional materials with the + button (7) - then find then filter the list by a keyword, and select the material to add to the job. Then modify the quantity used as above.
- If a material was not used then used the delete button
Note that is important to modify the base recipe if we find that he materials actually required to manufacture the job are different to those listed.
Other elements of the screen
- 3,4,6 are advanced features discussed below
- 5 sets the list to the default view - if you have used the (4) button
- 8 allows you to drill into all inventory transactions for this item
- 9 allows you to modify the locations where stock has been drawn from (only if you manage stock in this way
There are advanced features that may be used by some:
Some inventory systems have rules for ensuring that negative inventory (and other rules) can not be created by inventory transaction. The pre-flight check runs the inventory transactions and identifies issues that can be resolved before the inventory is actually committed to the job
Some jobs are raised exclusively to replenish finished goods stock. The yield button allows to detail the finished good that will be created by the job. This is no different then entering these manually as positive values in the grid but is easier to manage when there are many material items
The inventory transaction can be exported to MYOB to ensure that the cost of sales and inventory figures on the balance sheet are correct