WorkCenter Cost Optimizer

WorkCenter Cost Optimizer is a functionality in the Production Module that allows the addition of costs to a Work Center or Machine Center Card to detail them and keep financial track of expenses related to a Machine or Work Center Card.

This functionality allows businesses to allocate shared costs, such as overhead, utilities, or administrative expenses, across multiple work centers or machine centers. This ensures that all centers contribute equitably to the shared expenses, reflecting their actual usage or benefit.

Users can define how shared costs are distributed in Machine Center/Work Center Cards. These rules can be based on criteria such as machine hours, production volumes, or labor costs. They can also relate a different Posting Group to each of the expenses or costs added to a Machine Center/Work Center Card so that during the posting of a production order, all the expense G/L accounts set up in a Machine Center/ Work Center Card will be posted in G/L Entry.

Benefits of Cost-Sharing Functionality:

1 - Cost Control and Optimization

2 - Accurate Cost Allocation

3 - Monitor and manage the distribution of shared costs

This functionality manages setting up costs related to a posting group in a Machine Center / Work Center Card that details the unit cost of a Work or Machine Center. When the routing is created, it inserts all costs allocated to a Machine Center or Work Center in the background.

In Addition, on the Released Production Order page, the tool offers an added action such as “Open Output Journal” in which the lines of Routing related to the item being produced get inserted automatically in the Output Journal.

This solution is ideal for manufacturing companies needing precise cost allocation across work or machine centers. It's perfect for businesses aiming to optimize cost control and streamline production order posting, benefiting both production managers and financial teams.

WorkCenter Cost Optimizer

by InfoSoft Business Solutions