Plan and Account Costs

The Plan and Account Cost feature helps cost accountants in all phases of the manufacturing cycle. It helps to estimate and set costs for components, resources and overheads. The components issues and product completion transactions are used to calculate the actual costs incurred for each work order.

The work order costs include the cost of the contract manufacturing service item. The service item cost is also included in the contract manufacturing work order, just as any other component. If the item is costed using actual cost method, then the Purchase Order (PO) price is used. However, for average and standard cost method, the current costs are used. The costs are calculated, and then the necessary distributions and accounting entries are created for all the transactions reported against this contract manufacturing work order.