Free product costing software

Refer to the What-If Costs section of these instructions for more information on the what-if cost analysis feature. Note: All the columns on the StockCode sheet with a yellow column heading require user input.

The columns with light blue column headings contain formulas that are automatically copied when you add a new stock code in the first empty cell in column A. Error Code - the formulas in this column display an error code if there is a problem with the data that has been entered in any of the user input columns.

This column should therefore be blank if all user input has been entered correctly. If any error codes are reflected in this column, the errors should be investigated and rectified in order to ensure that all template calculations remain accurate.

Refer to the Error Codes section of these instructions for guidance on how to correct the appropriate user input errors. Product Type - this column indicates whether the stock code relates to a stock item that is bought-in from a supplier or to a product that is manufactured. A product costing should be compiled for all manufactured products by linking the manufactured product and its components on the BOM sheet. The formula that has been entered in this column therefore checks whether the stock code is included in column A on the BOM sheet and if so, identifies the product as a manufactured product.

Alternatively, the product is deemed to be a bought-in product. Product Cost - this column contains the product cost of each stock code. If a product is classified as a bought-in stock item, the product cost equals the purchase price that is specified in column D. If the product is classified as a manufactured product, the product cost is calculated based on the components that have been linked to the product on the BOM sheet and the appropriate purchase prices, input quantities and yields of the linked components.

The Product Cost column therefore contains the product costs of all stock items. What-If Cost - this column contains the what-if costs of each stock code. The what-if costs are calculated on the same basis as the product costs, but the what-if costs in column E are used instead of the purchase prices in column D for all stock components.

The input quantities and yields of all the components that have been linked to the manufactured stock items on the BOM sheet are exactly the same.

Refer to the What-If Costs section of the instructions for more information on the calculation of what-if costs. Quantity Forecast - the formulas in this column calculate the stock quantities that are required in order to produce the finished goods quantities that are entered on the Forecast sheet. Refer to the Quantity Forecast section of these instructions for guidance on how the forecast quantities are calculated.

Value Forecast - the value forecast is calculated by multiplying the quantity forecast by the stock purchase prices of the appropriate bought-in stock items in column D. What-if Value Forecast - the what-if value forecast is calculated by multiplying the quantity forecast by the what-if stock purchase prices of the appropriate bought-in stock items in column E. Note: Purchase prices in column D and what-if prices in column E should not be entered for manufactured products because the product costings of these stock items are determined based on the purchase prices and what-if prices of the components that have been linked to the manufactured products.

If you enter a purchase price or what-if price for a manufactured stock item, the input will have no effect on the costs that are calculated. Note: We recommend that you review all bought-in stock items on the StockCode sheet in order to ensure that no manufactured products are classified as bought-in stock items.

If a manufactured product is incorrectly classified as a bought-in product, it means that no components have been linked to the appropriate product on the BOM sheet. Once you add the appropriate components to the BOM sheet, the stock code will be automatically be classified as a manufactured product. The purpose of the BOM sheet is to create a link between stock components and manufactured products. This is accomplished by entering the appropriate stock code of the manufactured product in column A and entering the stock code of the appropriate component in column B.

Multiple stock components can be added to a single manufactured product in order to create a product costing which consists of multiple stock components. Note: Columns A and B both contain list boxes that include all the stock codes that have been created on the StockCode sheet. You therefore need to create a stock code for each manufactured or component product before you will be able to select the appropriate stock code from the list boxes in these columns.

You can add a new stock component to the sheet by simply selecting the appropriate product code from the list box in the first empty cell in column A - the table will be extended automatically to include the new product code.

All the columns on the BOM sheet with a yellow column heading require user input. The columns with light blue column headings contain formulas that are automatically copied for all new stock components that are added to the Excel table. Product Stock Code - the stock code of the manufactured product to which the stock component should be added needs to be selected from the list box in this column. The list box includes all the stock codes that have been created on the StockCode sheet.

The product stock code should be repeated for all the components that are used in the manufacturing process. For example, if 10 components are required in order to produce a particular manufactured product, you need to add 10 different component stock codes in column B in 10 separate rows and repeat the product stock code in column A in each of these rows.

All 10 component stock codes will then be linked to the same manufactured product and will be included in the same product costing. Note: Components are listed on the product costing in the same order in which they appear on the BOM sheet.

This means that even though all components do not need to be grouped together on the BOM sheet by the product stock code , the order in which they are entered or sorted will determine the order in which they appear in the costing. We therefore recommend that you always sort the data on the BOM sheet by the product code in column A and the component code in column B after making changes to the BOM sheet. By sorting the data, the components will always be listed on the product costings in a consistent order.

Component Stock Code - a component stock code needs to be selected from the list box in column B for each component that is used in manufacturing the product which has been selected in column A. The product costings that are produced by this template accommodate a maximum number of 30 components per manufactured product. The cost of a manufactured product is calculated based on the costs of all the components that have been linked to the product on the BOM sheet.

Note: A very efficient method of adding components to a manufactured product is by copying the components from a similar product, selecting the appropriate new product code from the list box in column A and editing the input quantities and yields of all the components.

This method will however only be efficient if components have previously been added to a similar manufactured product on the BOM sheet. Input Quantity - the input quantity of the stock component that is used in the manufacturing process should be entered in column C.

This quantity should be entered in the same unit of measure that is specified for the particular stock code on the StockCode sheet the component UOM is listed in column I. If the unit of measure of the manufactured product is "Units", the input quantity of the component should be sufficient in order to produce 1 unit of the manufactured product but if the unit of measure of the manufactured product is for example "Dozen", the input quantity that is entered should be sufficient in order to produce 12 units of the manufactured product.

Note: The yield basis should also be taken into account when determining the appropriate component input quantity. If the yield that is entered in column D is based on an Input basis, the component quantity that is added at the beginning of the manufacturing process should be entered in column C. If however the yield is based on an Output basis, the component quantity that remains at the end of the manufacturing process should be entered in column C.

This is because the input quantity is divided by the yield as part of the component cost calculation. Note: You may also want to consider entering a calculation in the input quantity column because this approach may make it easier to determine how the input quantity has been calculated if a calculation has been necessary. For example: if the component unit of measure is dozen and only one unit is used in the manufactured product, the component quantity is calculated by dividing 1 dozen by twelve.

You therefore have the option of entering 0. Yield - the component yield should be entered in column D as a percentage. The input quantity that is entered in column C is divided by the yield in column D in order to determine the component quantity that is required in order to produce the manufactured product. Yields can be determined on an Input or an Output basis - the difference between the two bases is best explained by a definition and a few examples.

Definition: The inherent nature of a manufacturing process may result in the component quantity at the end of the manufacturing process being less than the component quantity that is introduced at the start of the manufacturing process. The quantity difference can be described as a yield loss.

The Input basis refers to the component quantity that is introduced at the start of the manufacturing process, while the Output basis refers to the component quantity which remains after the manufacturing process has been completed.

Note: If there is a significant yield loss during the manufacturing process and the incorrect yield basis is used to determine the yield that is entered in column D, the product costing of the manufactured product may be inaccurate. As we've mentioned before, the yield basis also affects the input quantity that needs to be entered.

It is therefore important to take the yield basis into account when determining the component input quantity that needs to be entered in column C.

Example: If we use minced meat in the manufacturing of a beef burger, we have to decide on a yield basis before we can determine the appropriate input quantity that should be specified. If our aim is to produce a g burger at the end of the manufacturing process, the quantity is based on the output after manufacturing. We may know that on average g of minced meat is required in order to produce a g burger at the end of the manufacturing process - the g is therefore the Input based quantity.

Example: Our example beef burger includes one slice of onions. With this component, we are not really concerned about the output weight because we have already decided that only one slice of onions will be included on our beef burger. The unit of measure of the onions component is kilogram and we therefore need to calculate the input quantity of this component based on how many slices are included in a kilogram of onions.

The quantity that represents one slice then needs to be entered in the Input Quantity column. We also need to take this yield loss into account in order to compile an accurate beef burger product costing.

The BOM sheet also includes 22 columns with light blue column headings. These columns contain formulas that are automatically copied for all the new components that are added to the Excel table on the BOM sheet. The purpose of each of these columns is as follows:. Product Description , Product UOM - these columns are included on the BOM sheet to enable users to view the description of the product codes that are selected in column A and to ensure that the correct unit of measure is used when entering component input quantities.

Component Description , Component UOM - these columns are included to enable users to view the description of the component codes that are selected in column B and to ensure that the correct unit of measure is used when entering component input quantities. Component Type - this column reflects the type of component that has been selected in column B.

If the component type is "Bought-in", it means that the component is purchased from a supplier. If the component type is "Manufactured", it means that the component is an intermediate product which needs to be manufactured.

Bought-In Price - if the component is a bought-in stock item, the purchase price of the component that is entered on the StockCode sheet will be included in this column. If the component is a manufactured stock item, the bought-in price will be nil and the component cost will be based on the calculations in the intermediate columns.

Bought-In Cost - the bought-in cost of components is calculated by multiplying the bought-in price of the component by the input quantity in column C and dividing the result by the yield in column D. In most cases, these are executives in the management level of operations. There are various types of bookkeeping and one of these is project accounting. This is a type of accounting that tracks the progress of projects from a financial point of view and creates reports.

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