Introduction

Introduction

Welcome to the “Costing” module!
In this module, you will discover:

• The different costing methods
• How to set up the costing of production
• What happens when subcontracting the production process
• Labor costs in MRP and different ways to incorporate them
• How to configure Work in Progress (WIP) accounts

If manufacturing plays a crucial role in a business, a company will likely need to set up costing methods and integrate these expenses into their manufacturing operations. For processes such as subcontracting, comprehending the flow of costs is essential as it will enhance the understanding of the financial aspects involved.

This document provides an overview of costing methods and outlines the steps to ensure their successful implementation in manufacturing, particularly in situations involving subcontracting and the inclusion of labor costs. Additionally, we will explore the setup of Work in Progress (WIP) accounts when utilizing Automated Inventory Valuation. After this module, you will possess a solid understanding of the accounting aspects within the realm of manufacturing.

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