[IMP] Manufacturing: update MO costs
closes odoo/documentation#11475
X-original-commit: e1227f0c2b
Signed-off-by: Samuel Lieber (sali) <sali@odoo.com>
Signed-off-by: John Holton (hojo) <hojo@odoo.com>
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@ -9,13 +9,12 @@ Manufacturing order costs
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.. |BoMs| replace:: :abbr:`BoMs (Bills of Materials)`
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The ability to accurately calculate the cost of manufacturing a product is critical when determining
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product profitability. Odoo's *Manufacturing* app simplifies this calculation by automatically
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product profitability. Odoo's **Manufacturing** app simplifies this calculation by automatically
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calculating the cost to complete each manufacturing order (MO), as well as the average production
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cost of a product, based on all completed |MOs|.
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.. important::
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Odoo's Manufacturing app distinguishes between the *manufacturing order cost* and the *real cost*
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of an |MO|.
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Odoo's Manufacturing app distinguishes between the *MO cost* and the *real cost* of an |MO|.
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The |MO| cost represents how much it *should* cost to complete an |MO|, based on the
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configuration of the product's bill of materials (BoM). This takes into account the cost and
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@ -30,8 +29,9 @@ Cost configuration
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==================
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Odoo computes |MO| costs based on the configuration of the |BoM| used to manufacture a product. This
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includes the cost and quantity of components and operations listed on the |BoM|, in addition to the
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operating costs of the work centers where those operations are carried out.
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calculation includes the cost and quantity of components and operations listed on the |BoM|, in
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addition to the operating costs of the work centers where those operations are carried out, and the
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amount paid to each employee who works on an operation.
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Component cost
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--------------
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@ -42,44 +42,61 @@ Products --> Products`, and select a component product. The cost is displayed in
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:guilabel:`Cost` field of the :guilabel:`General Information` tab, on the component's product form.
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It is possible to set the cost of a component manually, by clicking the :guilabel:`Cost` field on
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the component's product form, and entering a value. However, any future |POs| for the component
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override a value entered manually, resetting the :guilabel:`Cost` field back to an automatically
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the component's product form and entering a value. However, any future |POs| for the component
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override a manually entered value, resetting the :guilabel:`Cost` field back to an automatically
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computed value.
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.. _manufacturing/mo-costs/work-center-cost:
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Work center cost
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----------------
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To set the operating cost for a specific work center, navigate to :menuselection:`Manufacturing app
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--> Configuration --> Work Centers`, and select a work center.
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To set the operating cost for the work center, as a whole, enter a value in the :guilabel:`per
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To set the cost of operating the work center for one hour, enter a value in the :guilabel:`per
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workcenter` field, located beside the :guilabel:`Cost per hour` section on the work center's
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:guilabel:`General Information` tab. This operating cost is used regardless of how many employees
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are working at the work center at any given time.
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:guilabel:`General Information` tab.
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To set the operating cost for the work center based on the number of employees working there at a
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given time, enter a value in the :guilabel:`per employee` field, located beside the :guilabel:`Cost
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per hour` section on the work center's :guilabel:`General Information` tab. For example, if `25.00`
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is entered in the :guilabel:`per employee` field, it costs $25.00 per hour for *each* employee
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working at the work center.
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Note that, if values are entered in both the :guilabel:`per workcenter` *and* :guilabel:`per
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employee` fields, the value in the :guilabel:`per workcenter` field takes precedence, and the value
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in the :guilabel:`per employee` field is ignored.
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To set the hourly cost of each employee that operates the work center, enter a value in the
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:guilabel:`per employee` field, located beside the :guilabel:`Cost per hour` section on the work
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center's :guilabel:`General Information` tab. For example, if `25.00` is entered in the
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:guilabel:`per employee` field, it costs $25.00 per hour for *each* employee working at the work
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center.
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.. important::
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It is also possible to set a per hour cost for specific employees, by navigating to the
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:menuselection:`Employees` app, selecting an employee, clicking the :guilabel:`HR Settings` tab
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on their employee form, and entering a value in the :guilabel:`Hourly Cost` field.
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The value entered in the :guilabel:`per employee` field is only used to calculate the |MO| cost,
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which is the estimated cost of completing the |MO|.
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Just like the *per workcenter* field on a work center form, the :guilabel:`Hourly Cost` field on
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an employee's form overrides the *per employee* field on a work center form.
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The actual cost of completing the |MO| is represented by the real cost. Instead of using the
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value entered in the :guilabel:`per employee` field, the real cost is calculated using the hourly
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cost specific to each employee.
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However, the *per workcenter* field takes precedence over both the *per employee* field on the
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workcenter form *and* the :guilabel:`Hourly Cost` field on the employee form.
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For example, if the :guilabel:`per employee` cost of a work center is '$50.00', and an employee
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with an hourly cost of '$60.00' completes a work order there, the |MO| cost (estimated) is
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calculated using the $50/hr cost, while the real cost is calculated using the $60/hr cost.
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|BoM| cost
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----------
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See the :ref:`employee cost section <manufacturing/mo-costs/employee-cost>` below for information
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on how to set the cost for specific employees.
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.. _manufacturing/mo-costs/employee-cost:
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Employee cost
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-------------
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To set the hourly cost for a specific employee, navigate to the :menuselection:`Employees` app, and
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select an employee. On the employee's form, select the :guilabel:`Settings` tab, and enter the
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employee's rate in the :guilabel:`Hourly Cost` field of the :guilabel:`Application Settings`
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section.
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.. important::
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As detailed in the :ref:`work center cost section <manufacturing/mo-costs/work-center-cost>`
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above, the value entered in the :guilabel:`Hourly Cost` field on the employee's form is used to
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calculate the real cost of an |MO|. The estimated cost of an |MO|, referred to as the |MO| cost,
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uses the per employee cost set on each work center's form.
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|BoM| configuration
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-------------------
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Configuring a |BoM| so Odoo can accurately calculate the cost of |MOs| that use it requires two
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steps. First, components **must** be added, and the required quantity specified. Second, operations
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@ -103,10 +120,10 @@ By default, the :guilabel:`Duration Computation` field is set to :guilabel:`Set
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which means that the number entered in :guilabel:`Default Duration` field is always used as the
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expected duration of the operation.
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Selecting :guilabel:`Compute based on tracked time` causes Odoo to automatically compute the default
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duration based on a certain number of work orders, which is set in the :guilabel:`Based on` field.
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Before there are work orders to compute this duration, the value in the :guilabel:`Default Duration`
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field is used instead.
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Selecting :guilabel:`Compute based on tracked time` causes Odoo to automatically compute the
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:guilabel:`Default Duration` based on a certain number of work orders, which is set in the
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:guilabel:`Based on` field. Before there are work orders to compute this duration, the value in the
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:guilabel:`Default Duration` field is used instead.
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The hourly cost of operating the work center, and the duration of the operation, are used to
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calculate the operation's cost.
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@ -137,7 +154,9 @@ same costs. This is the *estimated* cost of completing the |MO|.
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However, once work commences, the values in the :guilabel:`Real Cost` column may begin to diverge
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from the values in the :guilabel:`MO Cost` column. This happens if a different component quantity is
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used than was listed on the |MO|, or if the duration of a work order is different than expected.
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used than was listed on the |MO|, the duration of a work order is different than expected, or the
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hourly cost of the employee performing a work order differs from the employee cost set on the work
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center.
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Once the |MO| has been completed by clicking :guilabel:`Produce All`, the values in the
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:guilabel:`MO Cost` column update to match those displayed in the :guilabel:`Real Cost` column.
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