DYNAMIC 3i MANUFACTURING & Actual Costing

Actual Cost

Under an Actual Costing environment each item or job would get its cost based upon the actual cost of the item or combined cost in the case of manufactured or fabricated goods.

The costing is tracked by the actual receipted cost of the items.  In the case of the Manufacturing modules the actual costs are transferred to the job and the cost of the job is now dependent upon the actual cost of the items as the job progresses. 

In the Actual Cost environment the Job Material / Labour Cost Inquiry – cc0100 and the Job Standard / Actual Cost report are still utilized to see the respective costs associated with a  job.  From a financial prospective, posted jobs and their associated cost posting can be seen in the Actual Cost Breakdown – cc1700 which is accessed by “Document” reference.  In the case of Manufacturing the Document is the actual job number.  All of the reported costs and their respective receipts to attain their actual cost  can be seen.

Based upon FIFO (First in First Out) or LIFO (Last in Last Out) principles, as materials are received into inventories the varying costs and quantities depleted against a job have their respective associated cost transferred to the job.  This is based upon the items Bill/Structure. 

The Actual Cost of a manufactured item occurs at the very first confirmation of quantity into inventories.  From this point forward within DYNAMIC3i the item is treated the same like a purchased item received into the system.

The manufacturing financial posting are per the DYNAMIC3i Production Control General Ledger Posting Logic.

Note. In the case of multiple confirmations of a job and subsequent confirmations beyond the first one having a different cost calculated (ie. more, less or different cost material, labour used), the overall costs will be at the initial first confirmed job Actual Cost (above) and any difference will be treated as a variance.

Note: if no material usage is confirmed the last cost of the material component(s) will be used for the job  postings at standard requirements for the job.  Likewise with labour:  If no actual labour is posted to the job it will assume to be the standard labour required for the job and post accordingly.

The last cost element of an item will be updated to the last receipted cost of the item in the case of a raw material or purchased items.  In the case of a finished or fabricated item an automatic rollup of the actual costs of the components will be updated to the last cost as the finished or fabricated item is received into inventories. 

Note also that Actual Costing optionally allows for the setup of costs either by Standard Cost Entry - in1110 or Cost Rollups (cc0300, cc0600) in the case of fabricated or finished good items.  Essentially setting up a base line standard cost for the items.  Note, this is totally optionally under Actual Costing and would be done to establish a reference point to compare associated actual costs against if desired..