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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Production Order - Cos...
Small and medium business | Business Central, N...
Answered

Production Order - Cost and Expenses

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Posted on by Dharmesh

Dear Experts

 

I would like to track costing and labour-wise expenses in Production Orders in Microsoft Dynamics 365 Business Central.

Could you please guide me on how to manage this — for example, how to record or link employee or labour costs against each production order operation, and later analyse the cost per employee or per lot?

Thank you in advance for your support.

Categories:
Dynamics 365 Business Central
  • Verified answer
    Ben Baxter Profile Picture
    Ben Baxter on at
    Production Order - Cost and Expenses
    The out-of-the-box process would be to define your employees as either Work Centers or Machine Centers.  As you record time (via Output Journal), you can list the related employee's Work/Machine Center on the line.  This can also be processed through the Production Journal directly on a Released Production Order.  This process allows you to record the costs associated with your labor to the Production Order.
     
    There are also ISV Extensions available in AppSource to enable more of a Manufacturing Execution System (MES) allowing employees to scan in/out of Production Orders, which eventually posts through the Output Journal in Business Central.  These solutions can make for an easier interface for the shop floor and enable a more real-time capture of labor costs.
     
    You didn't mention material costs, but they can be captured in the same fashion, the difference being they are posted through the Consumption Journal (or Production Journal of a Released Production Order).
     
    Best Regards,
    Ben Baxter
    Accent Software Inc
  • Suggested answer
    Jainam M. Kothari Profile Picture
    Jainam M. Kothari on at
    Production Order - Cost and Expenses
    Hello,
     
    To track labour and costing in Production Orders in Microsoft Dynamics 365 Business Central:
     
    1. Set up Work/Machine Centers with cost rates
    2. Define Routings with operations and time
    3. Create and release Production Orders
    4. Record labour via Production Journal or Add-ons
    5. Post journals to update costs
    6. Analyse using reports and ledger entries

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