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Understanding Batch Production and Costs

Understand Material Cost, Total Input Cost, and Net Cost of Production on Batch Production lists and forms.

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On this page

Batch production costs show what it took to turn inputs into outputs: materials, optional labour and overhead, and the net cost of the run.

Read the list

  1. Open Inventory > Batch Production.
  2. For each batch, review Total Material Cost, Total Labour And Overhead Cost, and Total Input Cost alongside TXN Date, Reference, and TXN No.

How costs are built on Add New Batch

On Add New Batch, input lines drive material cost:

  • Quantity x Rate contributes to each row's Amount.
  • Material Cost sums input material amounts.
  • Add Labour and Overhead cost adds non-material production cost when enabled.
  • Total Input Cost combines materials with those extras.
  • Net Cost of Production is the final production cost after the options you enabled (including byproduct or abnormal loss when used).

Why it matters

Accurate batch costs keep stock valuation honest and help you price finished items. Pair this with Understanding Stock Ledger and Item Details when you review Stock Value after a run.

What happens next

Create the next batch when you produce again - How to Create a New Production Batch.