Product Cost Management Dashboard |

Use the Product Cost Management dashboard to view information about factors affecting product gross margin, such as the fulfilled value of orders, product cost, and manufacturing cost variances.

• View product gross margin by organization, product category, item, and
customer, including change in product gross margin over time.
• View standard and actual manufacturing costs, and the resulting variance, for all closed jobs.
• View material usage variance amount and percent by organization, inventory category, and item.
• View resource variance amount and percent by resource group, organization, department, and resource.

 

KPI Definitions
¡E Product Gross Margin = [(Fulfilled Value) – COGS / Fulfilled Value] * 100 Fulfilled Value = Fulfilled Quantity * Selling Price for sales order lines.
COGS = Total item costs associated with the products shipped.
¡E Manufacturing Cost Variance = [(Actual Cost – Standard Cost) / Standard Cost] * 100

Actual Cost = Actual cost charged to all closed jobs
Standard Cost = Standard cost for all closed jobs

¡E Material Usage Variance = [(Actual Usage – Standard Usage) / Standard Usage] * 100
Actual Usage = Actual quantity of components issued to a job for an
assembly, multiplied by the Actual Cost for all completed jobs. (The actual quantity issued to a job is the quantity issued from inventory to work in process.)
Standard Usage = Standard quantity of components in the assembly, multiplied by the Actual Cost for all completed jobs.

¡E Resource Variance = [(Actual Resource Cost – Standard Resource Cost) / Standard Resource Cost] * 100
Actual Resource Cost = Resource Hours charged to a completed job * Actual Cost of Resources based on each resource transaction for all completed jobs
Standard Resource Cost = Standard Resource Hours for a job, based on the actual routing used * Standard Cost of Resource at the time of completion for all completed jobs

The Product Gross Margin reports can be used to answer
the following questions:
• What is the product margin, by product category and by product, in a given time
period?
• What is the trend of product margin over time, for all or for specific organizations
or product categories?
• How does product margin compare across organizations?

Product Gross Margin
This report calculates the difference between the fulfilled values and cost of goods sold (COGS) for items that are shipped. The report displays the margin as both a number (fulfilled value minus COGS) and as a percentage of total fulfilled value by organization, product category, item, and customer. The report is useful for managers who are responsible for product profitability and gross margin percentage.

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