Costing (Manufacturing Accounting)
Product costing and manufacturing cost management
The MRP Account module integrates accounting into the manufacturing process in Odoo. This module enables automatic product costing, manufacturing cost accounting, labor cost tracking, and automatic journal entry creation.
Key Features
Key points
• Automatically calculate product cost based on BoM and material costs
• Account manufacturing costs to analytic accounting
• Track labor costs from work orders
• Create automatic journal entries for manufacturing processes
• Detailed cost structure reports
• Manage inventory valuation using FIFO/Average methods
• Track WIP (Work In Progress) accounting
User Groups
User Permissions
| Group | Permissions |
|---|---|
| User | View basic manufacturing cost reports |
| Manufacturing User | View manufacturing costs, calculate BoM costs |
| Accountant | View and manage manufacturing journal entries, WIP accounting |
| Billing Manager | Full access: configure accounting accounts, manage costs |
Important Terminology
| Fields | Trường dữ liệu | Description |
|---|---|---|
| Cost Structure | Cấu trúc chi phí | Detailed analysis of manufacturing costs |
| BoM Cost | Giá thành BoM | Cost calculated from Bill of Materials |
| Component Cost | Chi phí nguyên vật liệu | Cost of components in BoM |
| Operation Cost | Chi phí gia công | Cost of work centers and operations |
| Labor Cost | Chi phí lao động | Labor cost from work orders |
| WIP Accounting | Kế toán WIP | Work in progress accounting |
| Analytic Account | Tài khoản phân tích | Account for project-based cost analysis |
| Valuation | Định giá | Inventory valuation method |
Product Costing
The module automatically calculates product cost based on material costs, operation costs, and extra costs.
Key points
• Formula: Cost = (Total Material Cost + Total Operation Cost + Extra Cost) / Production Quantity
• Material Cost: Price of components in BoM
• Operation Cost: Work center cost × operation time
• Extra Cost: Additional costs added to MO
Update Product Price from BoM
Steps
1. Go to Manufacturing → Products → Products.
2. Open the product to calculate cost.
3. Click Compute Price button.
4. System automatically calculates cost from BoM.
5. Updates the Cost field of the product.
6. Applies to Average costing method.
View BoM Cost Structure
Steps
1. Go to Manufacturing → Products → Bill of Materials.
2. Open the BoM to view.
3. Click Cost Structure button.
4. View detailed report: Cost per component, cost per operation, total cost and unit price.
Analytic Accounting in Manufacturing
Assign analytic accounts to Manufacturing Orders to track costs by project or department.
Steps
1. Open Manufacturing Order.
2. In Extra Info tab, select Analytic Account.
3. When MO is completed, costs will be recorded to this analytic account.
Track Costs by Project
Key points
• Material Cost: When consuming materials
• Labor Cost: When completing work order
• Operation Cost: Based on time and work center cost
View Analytic Reports
Steps
1. Go to Accounting → Reporting → Analytic Accounting.
2. Filter by Analytic Account.
3. View detailed manufacturing costs by Manufacturing Order, Work Order, Time.
Cost Structure Report
MO cost report compares expected costs with actual costs.
Cost Report
| Item | Expected | Actual | Variance |
|---|---|---|---|
| Component Cost | Cost per BoM | Actual cost | +/- Variance |
| Operation Cost | Cost per BoM | Actual cost | +/- Variance |
| Total Cost | Total expected | Total actual | +/- Variance |
| Unit Cost | Expected unit price | Actual unit price | +/- Variance |
Manufacturing Inventory Valuation
The module supports two inventory valuation methods.
Valuation Methods
| Method | Description | Application |
|---|---|---|
| FIFO | First In First Out | First received, first issued price |
| Average | Average Cost | Weighted average price |
Configure Product Valuation
Steps
1. Go to Inventory → Configuration → Settings.
2. Enable Automated Inventory Valuation.
3. On product, select Costing Method: FIFO or Average.
4. Select Inventory Valuation: Automated.
Automatic Journal Entries
When MO is completed, the system automatically creates journal entries.
Key points
• Material consumption: Debit Production Account, Credit Stock Valuation Account
• Finished goods receipt: Debit Stock Valuation Account (Finished goods), Credit Production Account
Labor Cost Accounting
Configure work center costs to automatically calculate labor costs.
Steps
1. Go to Manufacturing → Configuration → Work Centers.
2. Open work center to configure.
3. Enter Cost per Hour (e.g., 100,000 VND/hour).
4. Enter Expense Account (labor cost account).
5. Click Save.
Record Labor Costs
When work order is completed, the system automatically calculates and records costs.
Key points
• Cost = Actual time × Cost per Hour
• Create journal entry: Debit Production Account, Credit Expense Account (Work Center)
WIP (Work In Progress) Management
WIP is the value of work in progress - MOs that are in production but not yet completed.
Steps
1. Go to Manufacturing → Operations → WIP Accounting.
2. Select accounting period (month/quarter).
3. Click Compute to calculate.
4. System displays list of WIP MOs, WIP value per MO, total WIP value.
5. Click Create Journal Entry to create entry.
Integration with Accounting
Configure accounting accounts for manufacturing.
| Fields | Trường dữ liệu | Description |
|---|---|---|
| Stock Valuation Account | Tài khoản định giá tồn kho | Account for inventory valuation |
| Stock Input Account | Tài khoản nhập kho | Account for stock input |
| Stock Output Account | Tài khoản xuất kho | Account for stock output |
| Production Account | Tài khoản sản xuất | Account for production |
| WIP Account | Tài khoản sản xuất dở dang | Account for WIP |
Practical Tips
Key points
• Update material prices regularly: Ensure cost prices on products are updated for accurate costing
• Track variance: Regularly compare expected vs actual costs to identify issues
• Use analytic accounts: Assign analytic accounts to MOs to track costs by project/department
• Check WIP periodically: Create WIP journal entries at end of each accounting period
• Standardize BoMs: Ensure BoMs reflect actual production processes
• Update work center costs: Adjust cost per hour when changes occur