Manufacturing Process Costing is a critical aspect of production management, especially in industries like food manufacturing, where uncertainties in finished goods quantities are common. This blog introduces the MRP Process Costing Accounting with Secondary Products in Odoo Apps Community Edition. While the app primarily operates in the Enterprise Edition, it brings the functionality to the community version as well.
Key Features
1. Secondary Product Production
- Simultaneous Production: The app enables users to produce secondary products alongside finished goods in a single manufacturing order.
- Quantity Flexibility: Users can finish manufacturing orders with different quantities than planned, accommodating variations in production outputs.
2. Costing Management
- Bill of Materials Configuration: Users can configure Bills of Materials (BOM) with secondary product outputs, defining the products that will be generated as secondary by-products.
- Comprehensive Costing: The app supports calculating process costing for manufacturing, including labor and overhead costs for both main finished goods and secondary products.
3. Accounting Integration
- Automated Journal Entries: Upon completion of a Manufacturing Order (MO), the app generates accounting entries for process costing, incorporating outputs and associated costs.
- Costing Methods: Users can choose between automated and manual costing methods, allowing flexibility in managing material, labor, and overhead costs.
How It Works
BOM Configuration: Users can configure BOMs with secondary product outputs, defining the planned costing for both main and secondary products.
Production Recording: During production, the app allows users to record actual output quantities, accommodating variations in finished goods and secondary products.
Costing Methods: The app supports two costing methods - manual and automated. In the manual method, users can add costs directly to BOMs and Manufacturing Orders. The automated method calculates costs in real-time based on work-center-defined labor and overhead costs.
Quantity Adjustment: Users can adjust finished product quantities in Manufacturing Orders, allowing flexibility in recording actual production outputs.
Use Case: Food Manufacturing
The app is particularly useful in food manufacturing, where predicting exact finished goods quantities can be challenging. The flexibility it offers in recording actual outputs ensures accurate costing despite variations.
Compatibility
The Manufacturing Process Costing Accounting with Secondary Finished Goods Odoo App is compatible with both Odoo Enterprise and Community Editions.
In summary, this Odoo app provides a comprehensive solution for manufacturing process costing with a focus on secondary finished goods. Whether you're dealing with uncertainties in production outputs or managing costs efficiently, this app proves to be a valuable asset for manufacturers.
For more details and to explore the Enterprise Edition version, visit the Manufacturing Process Costing with Secondary Finished Goods Odoo App.