Allocating depreciation and utiliy cost to manufactured item

Hi,

In the manufacturing module, we can record operation cost. Any clue on how to record depreciation and utility cost to a manufacturing order? The cost will be known after month closing, and spread to produced items based on certain rate calculation.

Hello,

Depreciation will be applied on the valuation of an item, and not the the manufacturing/production order. You can update valuation-after-depreciation via Stock Reconciliation Tool. The difference in the value which will be depreciation amount will be booked under Difference Account selected in the Stock Reconciliation.

https://kb.erpnext.com/kb/buying/creating-depreciation-for-item

Hello Umair. I received message stock reconciliation does not work for batch numbered item when doing stock reconciliation. Any workaround?

Hello,

As per the latest ERPNext upgrade, you should create Asset record for the Asset Items and book depreciation entry from there.