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Costing

Wrapped up with the quoting, specifying and materials requirements associated with an order, are a variety of costing and margin calculations which form the basis of assessing the profitability or contribution of a particular order. This can be calculated in real time so that the operator can make decisions on agreeing a price (such as discounts) without losing sight of the margin in that order.

The RTIS quoting Module calculates the direct materials (materials requirements) and labour costs (bill of labour) associated with an order. The operator can select from various materials types which will price differently according to your requirements, where possible taking data from Purchasing/Stock. For example, materials could be costed at current best cost, or average current stock cost, or they may need to be entered manually for a special stock item.

When combined with data captured from tracking orders through the factory, the direct costs of the WIP can also be calculated.

Going further, we can also provide a management accounting view of the data. Here, your methods of assessing the contribution of a product line/order and making the key decisions on what to make and for how much can be integrated with data from the order entry, purchasing/stock and factory systems. This overview of costing at the management accounting level can then be fed back into costing calculations and margin considerations made at the order level.

 

In this example from door order entry, the price of the job set, and then the cost of each panel, is calculated in real time.