"Actual Cost" should be included as an option in that list

ERPNext Manufacturing
1

Is there a way to obtain the actual cost of produced items during production? Currently, the available costing methods are: 1. Valuation Rate, 2. Last Purchase Price, and 3. Price List. However, when I choose one of these methods, I don’t seem to get the actual cost.

I suggest that “Actual Cost” should be included as an option in that list.

1 Like
2

And how will the system compute the actual cost? Will the user input the actual cost?

Thanks

Jay

3

Hi Jay,
I purchased raw material X: 10 kg (batch no. 001) at a unit price of 100, totaling 1000.

I also purchased the same item X: 10 kg (batch no. 002) at a unit price of 120, totaling 1200.

BOM costing method: last purchase price

Finished Good: Y

In this scenario, we’re using the “last purchase price” costing method for the Bill of Materials (BOM) for item Y, which means the system will use the most recent purchase price of raw material X when calculating costs.

Since you have two batches of raw material X:

  • Batch no. 001: 10 kg at 100 per kg (total 1000)
  • Batch no. 002: 10 kg at 120 per kg (total 1200)

If we produce item Y from batch no. 001, the actual cost should be based on the cost of that batch (1000). However, because we are using the “latest price” method, the system defaults to the price of the most recent batch (batch no. 002 at 1200) for calculations.

If I choose the valuation price method, the cost will be calculated based on what we mentioned for the valuation cost.

How can we get the actual cost, which is 1000?

4

@JayRam any suggestion?