Cost Documents

In repetitive manufacturing, the costs incurred during production are registered in a cost document that is linked to a work cell. Cost documents are valid for a specific period, typically a week, and are consecutive.

Cost documents are the equivalent of a financial period, and are usually not generated in the past. It is advisable not to generate cost documents too far into the future.

Note: A shift cannot be planned exceeding a cost document. The start and finish dates and times of a shift and cost document must align for clear costing results.

The cost document contains these bookings:

  • Material Issue

    Used for materials

  • WIP Transfer Issue

    Used for quantities of completed product

  • WIP Quarantine Issue

    Used for quantities of product quarantined during production

  • Operation Cost

    Used for labor hours and machine run hours

  • General Hours

    Used for wait, set-up and down time

Item surcharges and work cell surcharges may be booked during the production, but this depends on the set up of the production environment.

After the document is closed, the efficiency variances, price variances and calculation office variances are calculated and booked.

You can only close a work cell cost document if these conditions are met:

  • The end date was passed
  • The status of the cost document is Open
  • The previous cost document has the status Closed
  • All shifts falling in the cost document period are reported completed
  • All materials used during the shifts falling in the cost document period are backflushed
  • All warehouse orders related to the backflushed materials are fully processed.
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