In seafood production, one raw material becomes several products of very different value. For example, cod becomes fillets, loins, trimmings and by-products. Cost and Contribution in Wisefish makes sure that:
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the cost of raw material and other production costs ends up on the products made from it, in proportion to their value or weight, and
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you can see the contribution of each production lot: the value of what was produced compared with what it cost.
This section describes how costs flow through a production lot, and the tools used to distribute and analyse them.
How costs reach the products
Costs are collected on the production lot and then distributed to the products produced in it:
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|
Cost |
How it gets to the lot |
|---|---|---|
|
1 |
Raw material and WIP |
Consumption posted to the lot (Trade Item Consumption Journal, production agreements, WisePeripherals). |
|
2 |
BOM components |
Packaging, ingredients and non-inventory items such as labour or overhead, posted automatically from the products’ BOMs. |
|
3 |
Item charges |
Freight, duties and similar costs posted to the lot with item charges. |
|
4 |
Other production costs |
Wages, packaging and other costs that aren’t on a BOM, spread over many lots with Distribution Cost Documents. |
The value is then distributed to the products:
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Distribute Contribution, run on the lot (usually when it’s closed), spreads the value of the consumed raw material over the products produced in the lot. See Closing a Production Lot.
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Lot Revaluation can instead base the split on a unit cost per product, so high-value products carry more of the cost than by-products. See Lot Stages and Lot Products.
Finally, the Production Contribution Analysis compares production value and cost per lot, item and raw material.