v 13.0 Third Party 19
Required Apps Invoicing (account)
Manufacturing (mrp)
Purchase (purchase)
Inventory (stock)
Included Dependencies
Technical Name mrp_product_costing
LicenseSee License tab
Websitehttp://linkedin.com/in/openvalue-consulting-472448176
Also available in version v 11.0 v 10.0 v 12.0
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Required Apps Invoicing (account)
Manufacturing (mrp)
Purchase (purchase)
Inventory (stock)
Included Dependencies
Technical Name mrp_product_costing
LicenseSee License tab
Websitehttp://linkedin.com/in/openvalue-consulting-472448176
Also available in version v 11.0 v 10.0 v 12.0

PRODUCT COSTING

New features implemented in version 13:

·       Full industrial cost determination considering overhead costs, by product amount and fixed direct costs (due to changeover times in workorder processing)

·       New overhead costs determination based on component costs, finished product costs, variable labor/machine run costs and fixed labor/machine run costs

·       Delta costs calculation between standard and actual

·       New reporting (list, graph, pivot) for comparing standard vs actual figures, that’s material direct costs, labor/machine run direct costs, full direct costs

·       effective evaluation of workorder direct fixed costs at actual times with specific rate (actual changeover times)

·       analytic posting on cost collector for grouping all overheads costs (as counterpart so final balance in analytic accounting will be zero)

·       analytic account on manufacturing order for posting direct costs

·       wip amount determination on single manufacturing order

·       button on manufacturing order for listing all accounting moves

·       button on manufacturing order for listing all analytic moves

 

Main features:

§  costing figures calculated in real time in manufacturing order

§  accounting postings for WIP evaluation at each workorder confirmation (hence, WIP account evaluated in real time)

§  actual direct costs posted in real time at workorder confirmation

§  variance analysis of

     discrepancy between standard cost and planned cost (product evaluated as per the chosen bom/routing)

     component consumption and by product quantities

     labour/machine run times

§  Closure of manufacturing order for

     accounting posting of material variance costs and

     accounting posting of labour/machine run variance costs and

     accounting posting of by product accounting variance amount and

     overhead costs analytic postings

     cost collector analytic posting

 

Prerequisites:

§  stock evaluation as perpetual inventory for production materials (both components and semifineshed products)

§  WIP Account Set up at virtual production location level

 

 

Product Costing Parameters


The product costing has to be set up as follows (at company level):

       Labor Cost Account for direct cost accounting posting moved at every workorder confirmation as counterpart of the WIP account;

       Machine Run Cost Account for direct cost accounting posting moved at every workorder confirmation as counterpart of the WIP account; the selection between this and the previous labor cost account is based on a parameter in work center master data

§  Planned Variance Cost Account for account posting of variances between the semifinished standard cost and the planned cost calculated in manufacturing order

§  Material Variance Cost Account for accounting posting of variances between actual overall material consumption and the planned consumption calculated in manufacturing order based on the selected bom

§  Labor/Machine Variance Account for accounting posting of variances between actual labor/machine cost on actual times evaluated at workcenter rates and the planned labor/machine costs calculated in manufacturing order based on times in the selected routing evaluated at workcenter rates.

§  Manufacturing accounting journal for collecting all accounting postings related to manufacturing orders processing

§  Cost collector analytic account for analytic line at production order closure as counterpart of all overheads costs (sum up of all overheads costs)

 

 

Workcenter master data


the following costing master data can be entered at workcenter level:

·       Work center type for selecting the proper account in financial postings

·       Direct Costs:

     hourly rate for variable direct costs (for direct cost evaluation and related accounting postings)

     hourly rate fixed direct cost (for evaluating actual changeover times that’s time before production and time after production in direct accounting postings)

        Analytic Account:

     analytic account for analytic postings at workorder confirmation (direct costs) manufacturing order closure (overheads costs)

§  Overheads Costs:

     percentage for overheads fixed costs calculated from actual workorder variable direct costs

    percentage for overheads variable costs calculated from actual workorder variable direct costs

 

 

Bill of Materials master data


the following costing master data has be entered at BoM level:

§  Overheads Costs:

    percentage for overheads product costs calculated from actual product amount

    percentage for overheads consumption costs calculated from actual material consumption amount

    analytic account for analytic posting at manufacturing order closure

       Variances Analysis:

    Planned Variance Analytic Cost Account for analytic posting of variances between semifinished standard cost and semifinished planned cost calculated in manufacturing order

    Material Variance Account for analytic posting of variances for all material costs (planned vs actual), i.e. component consumption and by product confirmation.

    Direct Variance Account for analytic posting of variances for workorder direct costs (planned vs actual).

 

 

Cost figures in Manufacturing Order


the following costing figures are calculated in real time and available in the single manufacturing order:

 

§  Standard Cost vs Actual Unit Costs

 

Planned Costs

    Material Cost - based on BOM explosion selected in manufacturing order

    Variable Direct Cost - based on activities detailed in Routing selected in manufacturing order and evaluated at Direct Cost Rate in the linked workcenter

    Fixed Direct Cost - based on start and end times in the workcenter linked to the activities in Routing and evaluated at Fixed Cost Rate

    ByProduct Amount - based on BOM explosion selected in manufacturing order

    Full Direct Cost - based on the quantitative structure (BOM and Routing) in manufacturing order, that’s it is the sum of its components detailed before (byproduct amount also as minor cost)

    Current Standard Cost - reported from product master data

 

Actual Unit Costs

    Material Cost - calculated by dividing the overall Actual Material Cost by the actual produced quantity

    Variable Direct Cost calculated by dividing the overall Actual Labour/Machine Cost by the actual produced quantity

    Fixed Direct Cost - calculated by dividing the overall Actual Fixed Direct Costs (based on changeover times) by the actual produced quantity

    ByProduct Amount - calculated by dividing the Actual ByProducts Amount by the actual produced quantity

    Full Direct Cost as sum of previous ones

 

Delta Unit Costs

    Material Cost - calculated as difference between actual and planned ones

    Variable Direct Cost - calculated as difference between actual and planned ones

    Fixed Direct Cost - calculated as difference between actual and planned ones

    ByProduct Amount - calculated as difference between actual and planned ones

    Full Direct Cost - calculated as difference between actual and planned ones

 


§  Actual Costs

    Material Cost - calculated by taking into account the effective quantity consumption; account posting is performed at each production confirmation for direct cost and wip account evaluation;

    Variable Direct Cost - calculated at each production confirmation (workorder confirmation) by taking into account the effective working time performed; account posting is performed at each production confirmation for direct cost and wip account evaluation; an analytic posting is also performed for comparing it with budged cost evaluated for this activity

    Fixed Direct Cost – as Variable Direct Cost by taking into account actual changeover times evaluated at fixed standard rate

    ByProduct Amount – actual produced quantity of by product receipts

    Full Direct Cost - as sum of previous ones

 

     Full Industrial Cost including overheads costs also

    Full Industrial Unit Cost calculated by dividing the Full Industrial Costs by the actual produced quantity

 

    Produced Quantity

    WIP Amount – Calculated by summing in real time actual material costs, actual direct variable costs and actual fixed costs

 

§  Overheads Costs

    variable direct overheads costs calculated from actual workorder variable direct cost; an analytic posting is also performed for comparing it with budged cost evaluated for this activity when performing manufacturing order closure

    fixed direct overheads costs calculated from actual workorder fixed direct cost; an analytic posting is also performed for comparing it with budged cost evaluated for this activity when performing manufacturing order closure

    overheads components costs calculated from actual raw material consumption direct cost; an analytic posting is also performed for comparing it with budged cost evaluated for this activity when performing manufacturing order closure

    overheads finished product costs calculated from actual product confirmation cost; an analytic posting is also performed for comparing it with budged cost evaluated for this activity when performing manufacturing order closure

 

 

Accounting and Analytic postings details

at production declaration (workorder confirmation):

·       all accounting figures are based on actual times

·       accounting and analytic postings at workorder confirmation (direct labor/machine run costs):

o    accounting posting with WIP account evaluated in real time at workorder declaration

o    analytic posting for collecting overall direct costs to be compared with budget amount at the end of the period for rates calculation

·       accounting date determined as the end date of each workorder confirmation

·       cost figures updated in manufacturing order

 

 

at manufacturing Order Closure:

·       manufacturing order cost figures updating (after posting goods movements also)

·       accounting date determined as the end date of the last workorder confirmation

·       the WIP account balance is zero because of (therefore, after performing manufacturing closure, the balance of the WIP account is equal to zero)

§  planned variance: difference between the semifinished product standard price and its planned price calculated in MO for the actual produced quantity

§  labor/machine variance: difference between standard times at routing level and actual times at workorder declaration evaluated at standard rate in workcenter

§  material and by product variance: difference between standard material consumption at bom level and actual material consumption evaluated at standard price in product master data

·       analytic entries:

·       variable direct overhead cost posting

·       fixed direct overhead cost posting

·       product overhead cost posting

·       components overhead cost posting

·       cost collector analytic posting to sum up all OVH costs

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i want to ask about more detail
by
Mohamad Hashem Alwafaee
on 7/12/20, 8:54 AM

how dose it reflect in accounting module what are the journal entries that are generated from this module


I like this module, very similar to SAP Product Costing
by
jaya.angeles@gmail.com
on 7/3/20, 9:19 PM

This module for sure was conceptualize by an SAP consultant focusing on SAP PC. I will definitely buy this module.


Would like to have a live demo system to test this product before buying it
by
Dinesh
on 4/21/20, 8:03 AM

Hi Team, I am looking out for a 3rd party app for version 12 odoo with the above specification which you have mentioned. Would like to have a trial before purchasing the app. please let me know is that possible my email id is dinesh.thirumalai@targetintegration.com. Thanks for your support