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How to Record Cost of Resources in the Production Process

Recording Resource Costs in the Production Process

In the Production Process, various resources such as machines and labor are utilized. SAP Business One allows user to record the costs of these resources in the production process. For example, to record the cost of Raw Materials, SAP uses the Cost of Goods Sold (COGS) which has been accumulated through various transactions in SAP. To record resource costs, we need to follow the steps outlined in this article.

  1. Define G/L Accounts for each resource via Administration – Setup – Financials – G/L Account Determination menu, then select the Resources Tab.
  2. Open the Resources – Resource Master Data Then search for the resource for which you want to record the cost. On the right side of the screen, there is a table containing the columns Resource Standard Cost and Default Standard Cost.
  3. Fill in the Default Standard Cost based on the desired Resource Standard Cost. If you want to rename the Resource Standard Cost, you can do so in Administration – Setup – Resources – Resource Groups

  4. The cost recorded in the Resource Master Data will be used when creating an Issue for Production document based on the Production Order document.
  5. The following is an example of a Journal entry created by the SAP system based on the defined Resource Standard Cost. These Journal Entries will be created automatically after performing Issue for Production / Receipt from Production, depending on the Issue Method specified in the Production Order document.

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This article was written by PT. Sterling Tulus Cemerlang
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