Analyze profitability of each line, batch, and customer.
Using this dashboard
Analyze sales, and profitability of product lines, batches, and customers. All costs are taken from batch costs, if you don't use batches this dashboard is not for you.
COST & PROFIT ANALYSIS EXPLAINED:
BATCHThese costs are calculated when you close a batch and include the Price of batch inputs such as raw materials, ingredients, packaging, and labor/services recorded on the batch during packing or manufacturing. "Price" was recorded when you used Create Inventory > Supplier / Purchase order to record your inventory. If you edit the cost of items used in a batch or add items, you should open and close the batch so these costs can be recalculated and stored on the inventory that was manufactured / packed. You can add labor costs to a batch the same way you would add packaging materials.
TRANSPORT Freight and shipping charges can be set from Settings > Company > "Transport cost": enter the cost per pallet here (if this field isn’t in your app, please go to Settings > Admin > select “Company” and add a new plain text field called “Transport cost”; OR ask your consultant to add it for you). Cost per pallet works properly only if you have set Part > Units Per Pallet correctly; if you don't use pallets set Units Per Pallet to 1 (this field is now the cost of transporting ONE unit to the customer).
FIXED Set fixed costs per Part produced from Settings > Part > Edit a finished product > More Options > More Details > “Packing cost per unit”. The cost here can be used for overheads such as equipment, plant, electricity and a fixed labor component, or fixed packaging material costs if you are not recording these during Create Inventory process.
More about Batch Costs
Services / overheads / contractors / labor in batches:
On the Batch screen, on the Inputs tab, use Add Labor icon to add a service or labor to a batch. These will show on the Profit dashboard.
- Create a Part Category like “Services” from Settings > Parts, tap + icon next to Part Category to add new category.
- Add new Parts in that category such as “Labor”, “Lab tests”, “Overheads”, “Washing line”, “Hand sorting” etc.
Adding services to a batch
For example, if the “Hand sorting” line has variable employees then enter the cost per hour of one employee onto the Part.Price, when adding this Service to the batch, enter a Quantity that is the total hours used.
For overheads, use the same method; essentially enter Part.Price for one hour of overheads then add that service to the batch and enter the total hours into the Quantity field.