Add labor to a production job

Add labor to a production job

Overview

You can add labor or fees to a Production Job to incorporate those costs into the finished product. This will give you a more accurate product cost and therefore more accurate reports.

You can either track contract labor (fees from a third-party) or your own labor costs.

Add contract labor to a production job

If you use contract manufacturers, you can apply fees, costs of labor or other costs to your Production Jobs to accurately reflect the cost of the products that you have made.

Because you are purchasing the labor from a third-party, you can treat the additional fees as products, receive them into the inventory, and then use them within a Production Job just as any other product.

You may find it easier to set the stocktake method for labor to Batch, and upon receiving these 'products', apply the Production Job number as the batch number - this will ensure that when you come to complete your Production Job, you apply the right labor product to the right Production Job.

Add your own labor to a production job

If you wish to add the labor of your own staff to a Production Job, this labor must not be purchased as above, as it will be accounted for very differently through your payroll.

These costs can be added to Production Jobs by creating non-stock or non-diminishing products.

Once added to the production job, the cost of this line item - which can be entered or adjusted in the cost column - will inflate the cost of the finished goods.

This inflated cost will appear within Cin7 Omni only. Importantly, this cost does not form part of the COGS that gets passed to your accounting software. Upon import to your accounting software the cost of any non-stock products applied will be stripped from the COGS.

FAQs

Is there any way to plan labor requirements based on production?

If you add a labor product to a production job or bill of materials, the quantity required will be calculated as with any other component products. However, Cin7 Omni is not a process or job management software.

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