Production Costing

Production costing explains the value consumed and created by manufacturing work.

Open Production -> Costing.

Cost Areas

Area	Meaning
Material Cost	Component cost issued from stock or consumed by the BOM.
Labor Cost	Operator or labor-pool cost booked against production work.
Machine Cost	Machine or line cost where equipment costing is configured.
Overhead	Factory overhead absorbed by configured drivers.
Scrap And Rework	Cost of rejected, wasted, or reprocessed output.
Variance	Difference between standard, expected, and actual cost.

Review Checklist

• material issues match BOM expectations
• finished output quantity is correct
• scrap and rework are recorded
• labor, machine, and overhead assumptions are complete
• WIP and finished goods balances can reconcile to inventory and GL
• variance is reviewed before closing the production order

Related Guides

• Production Overview
• Production Operations
• Accounting GL Posting Rules
• Inventory Operations