Manufacturing

Sage Evolution ERP: Manufacturing in a Job Costing Environment

Do you have the Job Costing module or want to start manufacturing? Or, do you have a manufacturing company but can’t quite seem to get the normal Manufacturing module to work for you? Then you’ll be happy to know that the Sage Evolution Job Costing module can process manufacturing for you as well as whole lot more. Here’s a look at a few of the Evolution ERP Job Costing Module’s functions:

1. Templates

The first feature in the module is of course the templates, you can indeed create your “recipe” using the template feature of job costing. These can be edited at any point and when used, can be changed to accommodate the environment of the process.

Sage Evolution ERP: Manufacturing in a Job Costing Environment Templates

2. Workers

In Job Costing you can create your staff/labourers as Workers and assign them to the job. With this feature, you can add a cost to them and a billable rate. In doing so, you can factor some margin into the time.

Workers Sage Pastel Evolution ERP Manufacturing Job Costing Workers

3. Accounts Payable

On a job, you can also assign a supplier, thus allowing for those sub contracting components. This eliminates the need for unnecessary service stock codes. Also, when a supplier is used, it will automatically post a journal to the supplier so no need for PO’s or any other unnecessary processing.

Job AP Sage Pastel Evolution ERP Manufacturing Job Costing

4. Job Card processing

a) In job costing processing, the first thing I want to demonstrate is that you can easily load your templates in the actual process, thus saving you that extra time.

JobLoadTemplate

b) When on a Job Card, you may want to see what your profits are based on revenue and costs. You would have noticed that you had a tab on job cards for Inventory, Payables and General Ledger. This feature will show you per module and “All” will put all together inclusive of workers, giving you an overall result. One thing to bear in mind here is if for example, Accounts Payable is showing a loss that doesn’t mean overall you have a loss. It simply means that, that module is a loss because costs exceed revenue, but under “All” you may still have a profit. This profit is of course less than the loss so as you decrease your losses, so too will you increase your profits at a later stage.

Job Module Forcast Sage Evolution ERP: Manufacturing in a Job Costing Environment

5. Manufacturing

Once you have added all components of the process on a job card, you need to ensure the job and lines status is set to Active and then save the job card.

Where you see your List of Job Cards you will get an Option Make Inventory Item.

Once you select this, this will allow you to change your Job Card and all components into a finished product.

Notification Sage Pastel Evolution ERP Manufacturing Job Costing Job Complete

 

In the Item you choose, the costs from your forecast become the cost of this item, and the revenue becomes the selling price. If you manufacture, say, 20 units, this module will divide costs by 20 to calculate Cost per unit and divide revenue by 20 to calculate Selling per unit.

This module really is powerful in assisting you with manufacturing so call me today if you require a demo or any further details of the module.

 

About the Author

Garth Kahn – who has written posts on End 2 End Business Solutions.


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