About manufacture material costing

Material costs for a manufacture are calculated by tallying the unit cost and quantity of all materials listed in the manufacture. Craftybase uses the date of manufacture to pin-point the exact unit cost on this date using rolling average calculations.

If your material cost for a manufacture are calculated as zero, please see our article here for further guidance on how to rectify: Why is my manufacture material cost zero?

Bulk manufacture entry issues

As Craftybase is a perpetual inventory tracking system, adding bulk manufactures is generally not recommended. You will be wanting to ensure that your stock adjustments are dated as close as possible to actual so that your costings are accurate. 

Lets say that you have 500 orders for 2016, but haven't added any manufactures all year and decide to add in a big "catchup" manufacture to cover the making of all orders. The bulk manufacture is dated 1st Jan 2016. 

Craftybase will use this manufacture to increase your stock on hand on the first day of Jan, so there will have been enough stock in your inventory during the year to sell. This solves the issue of having enough stock to cover all sales, however it gets a little more involved when the costings are actually applied. 

For the manufacture of 500 to be itself costed correctly, there will also need to be enough materials in stock on Jan 1 as well. If you are out of any of your materials due to subsequent purchases during the year then the system will not be able to fully cost your manufactures - only materials in stock on the 1st Jan will be included in your manufacture costings. 

If your manufactures aren't costed correctly, then your orders will also not be costed correctly as they use the manufacture material costs to determine the order material costs.

Choosing to add in the bulk manufacture on the last day of the year has the opposite effect: your materials will have been in stock as your expenses will have been fully taken into account so your manufacture material costs will be correct. Your orders however will have a zero material cost applied as the system would not have any product stock on hand as your manufactures all occur after your orders are shipped.

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