Real Production Cost!

Hi Guys

Based on my knowledge, ERPNext does not consider real operation costs when calculating finished cost of products since the operating costs mentioned in workstations are not calculated automatically and after they happened, but they are only standard costs calculated manually by the user and before they really happen.

First, I’d like to check whether my understanding is right or not.

And second, I’d like to know whether any custom app or any kind of customization is available to cover my need? (i.e. the real production cost to be considered in calculating the finished product cost?)

Best regards,


I think your understand is right.

As for a custom app, you might have to speak with an ERPNext developer (there are tons of them). This is doable if he/she understands your requirement.

Hope this helps.

We’ve tweaked the work order cost calculations little bit to make it more appropriate for our customer needs. It’s doable but it depends on the requirement.

can you share more in detail for your case? I am considering to improve this area also.

We update the “Actual Operating Cost” in the “Operations” section of the “Work Order” when Job Card is submitted. That way, when Work Order is finished, the created Stock Entry has correct costs.

Basically, we have some internal manufacturing processes and subcontracted processes. The actual cost of subcontracted processes are calculated when Job Card is submitted.

understand, seems that when job card submitted actual activity rate is not yet available because the expenses for the actual hours is not booked/allocated yet, so in SAP there is month end closing steps such as cost allocation, actual activity rate calculation, and production order(work order) settlement. I am wondering whether it is feasible to do these in ERPNext, for some small company this will be too complicated.

If they are willing to enter they will. These are should be optional.