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Productions

Cost the run before you price it

Materials, labour and overhead absorbed onto the run and split across what came out. Price against what making it took.

Issuing the material.
New production batchPre-filled from cost card · using actual inventory costs
Save batch
Date22/08/2026
Batch #Auto-generated
CentreLeeds Works
AllocationBy sales value
ReferenceOptional
Materials5Raw materials consumed
MaterialQtyUnit cost (WAC)Total
Soy wax flakesPR-SOY-488B7B · 255 kg available120.000012.501,500.00
Glass jarsPR-GLA-4C8B34 · 255 unit available500.00004.202,100.00
Cotton wicksPR-COT-40DD5B · 33 unit available500.00001.65825.00
Fragrance oilPR-FRA-43CCCF · 141 L available40.000010.00400.00
Candle dyePR-CAN-426EFD · 32 unit available60.00005.50330.00
LabourDirect labour costs
Labour typeHoursRate/hrTotal
Pouring — Amelia Ward · direct14.0018.00252.00
Finishing — Dan Whitfield · direct11.0018.00198.00
OverheadIndirect costs with absorption
Expense / assetTypeDriverRateTotal
Workshop powerVariableLabour hours3.00/hr75.00
Workshop rentFixedOutput qty0.90/unit450.00
Pouring line — depreciationAssetMachine hours2.20/hr55.00
Cost summary
Materials (WAC)USD 5,155.00
Labour (25 hrs)USD 450.00
Variable overheadUSD 75.00
Fixed overheadUSD 450.00
DepreciationUSD 55.00
Total joint costUSD 6,185.00
Cost per unitUSD 12.37
Using actual costsMaterial costs use weighted average cost from inventory.
Output qty500 unit
Material, labour and overhead rolling to a cost per unit
Scented soy candleActiveCost card
MaterialUSD 5,150.00
LabourUSD 450.00
Variable OHUSD 100.00
Fixed OH
Depreciation
Total batch costUSD 5,700.00
Cost breakdown
Material 90.4%5,150.00
Labour 7.9%450.00
Variable OH 1.7%100.00
Summary
Allocation methodBy sales value
Prime costUSD 5,600.00
Total overheadUSD 100.00
Total batch costUSD 5,700.00
Output products 1 product
Scented soy candle500 unit · 100%USD 11.40per unit
Bill of materials 5 materials
Soy wax flakes120 kg
Glass jars500 unit
Cotton wicks500 unit
Fragrance oil40 L
Saved once, and every run starts from it
OutputsBatch PRD000005 · Leeds Works
AllocationBy sales valueBy weightManual
OutputTypeQtyShareCost/unit
Scented soy candleMain50088.0%10.89
Wax melts — offcutBy-product24011.4%2.94
Wax sweepingsWaste18 kg0.6%
Net joint cost allocatedUSD 6,185.00
Total joint costUSD 6,185.00
Main product carriesUSD 5,442.80
By-products and waste kept apart

Build the recipe once

What a product takes to make, saved and reused, so the next run starts from what the last one taught you.

Material leaves the shelf

What the run consumed leaves stock at what it cost, in the same action that puts it onto the job.

Overhead the proper way

A rate against hours, or a percentage of materials, of labour, of both, or of the whole run.

One batch, many outputs

Share the cost by value, by weight, or by your own split, with by-products and waste kept apart.

01Plan it

Start from what it took last time

Every run is costed from scratch by whoever is doing it. Two people cost the same product differently and neither is wrong.

Build the recipe once and start each run from it. Draft it, change it, and give it a real number only when it is real.

See how inventories work

Save what a product takes to make

A cost card holds the materials, labour and overhead a product normally needs. Start a run from it and the lines are already there.

See how it is costed
Cost card
Scented soy candleActiveCost card
MaterialUSD 5,150.00
LabourUSD 450.00
Variable OHUSD 100.00
Fixed OH
Depreciation
Total batch costUSD 5,700.00
Cost breakdown
Material 90.4%5,150.00
Labour 7.9%450.00
Variable OH 1.7%100.00
Summary
Allocation methodBy sales value
Prime costUSD 5,600.00
Total overheadUSD 100.00
Total batch costUSD 5,700.00
Output products 1 product
Scented soy candle500 unit · 100%USD 11.40per unit
Bill of materials 5 materials
Soy wax flakes120 kg
Glass jars500 unit
Cotton wicks500 unit
Fragrance oil40 L
Saved once, and every run starts from it
Batches
BatchesCost cardsMaterials
Finalised5
Draft3
Batches8 resultsNew
Batch noTitleOutputTotal costCost/unitStatus
PRD000005Soy candle run · 23 Jul 20265006,185.0012.37Finalised
PRD000004Soy candle run · 19 Jun 20262002,465.7612.33Finalised
D-PRD-00007Reed diffuser trial · 22 Aug 2026120836.856.97Draft
PRD000003Wax melt run · 11 May 20261,5004,421.852.95Finalised
D-PRD-00006Soy candle run · 25 Feb 20263003,684.5112.28Draft
PRD000002Candle gift set · 25 Feb 2026801,682.5721.03Finalised
Drafts carry a draft number until they are real

Keep it a draft until it is real

A planned run carries a draft number and can be changed freely. It takes a real number only when it becomes an actual run.

See how accounting works
02Issue to it

Take material off the shelf and onto the run

Material goes to the floor and nobody records it leaving. At month end the stock is short and the run has no material cost.

Record what the run consumed and the material leaves stock at what it cost you, landing on the run in the same action.

See how inventories work

Move stock and job cost together

What the run consumed leaves the location that held it, at what that location paid. The shelf and the run cost move in one moment.

See how inventories work
Material · stock and value
Soy wax flakesMaterial · PR-SOY-488B7B · kg
In stock
OverviewMovementAnalyticsAdjustments
On hand255.00
Available135.00
Consumed120.00
Material valueUSD 3,187.50@ USD 12.50 avg
Inventory by location4 locations
LocationOn handAvailableConsumedValue
Leeds Works180.0060.00120.002,250.00
Camden Branch45.0045.00562.50
Head office — London30.0030.00375.00
Bristol Depot
Consumed at the branch that held it, at what it paid
Labour on the run
PersonHoursRateTotal
Amelia Ward · direct14.0018.00252.00
Dan Whitfield · direct11.0018.00198.00
Reaching unit cost25.00USD 450.00

Put the people onto the run

Record who worked it, for how long and at what rate, direct or indirect. Labour reaches unit cost alongside materials.

See how personnel works
03Cost it

Absorb overhead the way your accountant does

Materials are on the invoice, but power, rent, machine and supervisor are a guess spread evenly over everything.

Charge a rate against actual hours, or a percentage of materials, of labour, of both, or of the whole run.

See how fixed assets work
The whole point

Every unit knows what it cost.

Configured once
Workshop powerVariable · labour hours
Workshop rentFixed · output qty
SupervisorFixed · % of labour
Pouring line · depreciationAsset · machine hours
Three of four attached to this run.

Set overheads up once and reuse them

Power, rent, depreciation, the supervisor. Configure each once and attach the ones that apply.

See how fixed assets work

What lands in the unit cost

Everything that made the thing, kept separate so you can see which part hurt.

Direct material, at what the location actually paid
Fixed overhead, absorbed across the run
Direct labour, by person, hours and rate
Depreciation on the machinery that made it
Variable overhead, on the basis you choose
Cost per unit, with each part still visible behind it
04Split it

Share one batch across everything it made

One run makes several things, plus offcuts you can sell and waste you cannot. Dividing evenly makes the main product look expensive.

Share the cost by what each output is worth, by weight, or by your own percentages. By-products and waste stay apart.

See how inventories work

Split by value, weight or your own figures

Where outputs differ in worth, split on value. Where they differ in bulk, split on weight. Where your trade has a convention, set the percentages yourself.

See how it is priced
Joint cost allocation
OutputsBatch PRD000005 · Leeds Works
AllocationBy sales valueBy weightManual
OutputTypeQtyShareCost/unit
Scented soy candleMain50088.0%10.89
Wax melts — offcutBy-product24011.4%2.94
Wax sweepingsWaste18 kg0.6%
Net joint cost allocatedUSD 6,185.00
Total joint costUSD 6,185.00
Main product carriesUSD 5,442.80
By-products and waste kept apart
Main productCarries its own cost honestly
By-productSellable, valued apart from the main output
WasteRecorded, and it distorts nothing

Keep by-products and waste apart

What comes off the side of a run is not the thing you are making. Handle it separately so the main product carries its own cost honestly.

See how reports work
05Finish it

Put finished goods back at what they cost

Finished goods go into stock at a guess, usually last year's figure. Every sale of them reports a margin that was never real.

What came out enters stock at what the run cost. The shelf, the job and the books all say the same thing about the same batch.

See how accounting works

Let the run write its own entries

Material moves out of stock into work in progress, overhead is absorbed, finished goods come back out at cost. Nobody writes a journal.

See how accounting works
Out of stock
Material issued at cost
Absorbed
Labour and overhead
Back onto the shelf
Finished goods at cost
Work in progress
Clears itself, and the balance agrees
MaterialAgainst the card
LabourAgainst the card
Overhead absorbedAgainst the card
Cost per unit, run against runBy component

Compare what it cost to what it should have

Against the cost card it started from, and against earlier runs. Where a run came in over, you can see whether it was material, labour or overhead.

See how business units work

Questions people ask first

Can I absorb overhead on a basis I choose?

Yes. A rate against actual hours, or a percentage of materials, of labour, of both together, or of the whole run. Your accountant decides which, not the software.

What if one run makes several products?

Share the cost by what each output is worth, by weight, or by percentages you set yourself. By-products and waste are handled separately so they do not distort the main product.

Does the machine's wear reach the unit cost?

Yes. Depreciation is an overhead type, so a machine on the asset register can absorb into the runs it made, alongside material and labour.

Where does labour come from?

Recorded on the run: who worked it, for how long, at what rate, and whether it was direct or indirect. It reaches unit cost with everything else.

Does payroll flow into a run automatically?

No. Payroll cost lands on the location somebody works in. Labour recorded against a run is what puts their work on that run, and it is entered deliberately rather than inferred.

Can I plan a run before it is real?

Yes. A planned run carries a draft number and can be changed freely. It takes a real document number only when it becomes an actual run.

What happens to work in progress?

Material moves out of stock into work in progress, overhead is absorbed into it, and finished goods come back out at what the run cost. Nobody writes the journal and the balance clears itself.

Can I reuse a costing across runs?

Yes. A cost card holds the materials, labour and overhead a product normally needs. Start a run from it and the lines are already there.

How do I know whether a run came in over?

Against the card it started from and against earlier runs, broken by cost component, so you can see whether it was the material, the labour or the overhead.

Do I need Inventories to use Productions?

Yes. Material has to come off a shelf and finished goods have to go back onto one, so the two work together and sit in the same plan.

Control

Controlled the way everything here is controlled

Who can start, change and finalise a run
What runs cost, against the card and each other
Runs stay drafts until somebody makes them real
Call a run whatever your floor calls it
Every issue, change and finalise recorded
Runs belong to the location that made them
One system

A run reaches into four other places

Material leaves inventories at what it cost
Machine depreciation comes from the asset register
Finished goods enter inventories at what the run cost
The location it ran at carries its cost
Labour comes from the record payroll pays
The whole run posts through the same ledger

Follow a batch from material to margin

Issue material to a run, put labour and overhead on it, split the outputs, then see the unit cost and what the finished goods are worth.