06. Costs, Wastage, Unconsumed Materials, and Yield

A production order’s cost and its effect on stock are driven by six things: the BOM component quantities, each component’s cost, wastage, unconsumed quantity, any labor or overhead lines, and the yield quantity. This article explains what each field means, where you can edit it, how Qoblex uses it to move stock, and how it values the finished product when the order is completed.

After reading this you will know when to record wastage versus unconsumed material, how yield relates to Quantity To Produce, how the finished-product cost is calculated, and what to review before you complete an order so the inventory and ledger result matches what actually happened on the floor.

Component costs

When you select a Finished Product on a Draft order, Qoblex loads the Bill Of Material, replaces any existing lines, and creates one line per component. Each component’s Unit Cost is set from that component variant’s moving average cost, and its Quantity is set to the recipe quantity multiplied by Quantity To Produce.

The Bill Of Material tab lists each component with these columns:

• Product name
• Quantity
• Wastage
• Unconsumed
• Unit Cost
• Total Cost

The Quantity and Unit Cost columns are read-only in this tab. Component quantities change automatically when you change Quantity To Produce on a Draft order; unit cost is captured from the moving average cost at the time the finished product is selected.

Wastage

Wastage is extra component input that is scrapped, lost, or otherwise consumed beyond the standard recipe quantity during production.

• The Wastage field is editable only while the order is Draft.
• On an assembly order, Qoblex allocates each component’s Quantity plus Wastage at the production location when you start production.
• At completion, wastage is added to the component stock that is consumed.

Use wastage when material is expected to be lost or scrapped during the run. Do not use wastage for material that stays physically available after production.

Unconsumed quantity

Unconsumed quantity is component input that was allocated for the run but was not actually used, so it is kept or returned rather than consumed.

• The Unconsumed field is editable only while an assembly order is In Production.
• It does not apply to disassembly orders.
• At completion, unconsumed quantity reduces the component stock that is consumed.

A component line’s Quantity cannot be less than its Wastage plus Unconsumed quantity. Qoblex blocks the save if any line breaks this rule.

Use unconsumed quantity when stock was reserved but returned or left unused, so the completed order does not consume more component stock than the run really used.

Component consumption at completion

When an assembly order is completed, Qoblex consumes each component from stock at the production location using:

Quantity + Wastage - Unconsumed

When a disassembly order is completed, unconsumed quantity does not apply. Each component is instead produced (added to stock) using:

Quantity - Wastage

Yield quantity

Yield quantity is the number of good finished units that Qoblex posts as produced (assembly) or as the BOM consumed (disassembly).

Qoblex manages Yield Quantity automatically in the production editor:

• When you select the finished product, Yield Quantity is set to the starting Quantity To Produce.
• When you change Quantity To Produce on a Draft order, Yield Quantity is reset to match it, and all component quantities are recalculated from the recipe.

The current yield is shown, read-only, on the Lots & Serial dialog when you assign batches.

Production is blocked when Yield Quantity is greater than Quantity To Produce, and when Yield Quantity is zero or less while the order is In Production.

On completion, an assembly order increases the finished product’s on-hand stock by the Yield Quantity, and the finished product’s unit cost is calculated over the same Yield Quantity (see the costing sections below). If fewer good units come out of the run than planned, this is expected: fewer units are added to stock, each carrying a higher unit cost.

Labor and overhead

Use the Add Labor / Overhead cost button to add labor, overhead, or other extra production costs as separate lines. These lines appear in a Labor / Overhead table with these columns:

• Labor / Overhead (description)
• Quantity
• Unit Cost
• Total

Notes on labor and overhead lines:

• Each line requires a description, a price, and a tax value, or the order will not save.
• Qoblex applies the manufacturer/contact’s purchase tax class if one is set; otherwise it uses the company’s default purchases tax.
• Labor and overhead lines can be edited at any time until the order is Completed.

Totals

The Bill Of Material tab shows two totals below the tables:

• Line items Total — the sum of the component line costs.
• Extra cost Total — the sum of the labor / overhead lines.

The cost shown for an order in the manufacturing list is the production total returned with the order.

How the finished product is costed at completion

Completing an order is the only step that posts an inventory-ledger result; starting, amending, and cancelling do not. On completion Qoblex builds Manufacturing ledger entries as follows.

Assembly:

• An outbound ledger line for each component, valued at its moving average cost, for Quantity + Wastage - Unconsumed.
• One inbound ledger line for the produced finished product, at the Yield Quantity. Its total value is the sum of the consumed component value plus the labor / overhead total. Its unit cost is that total value divided by the Yield Quantity.

Disassembly:

• One outbound ledger line for the finished product (the BOM) at its moving average cost.
• The transferred BOM value plus labor / overhead is distributed across the produced components in proportion to each component’s moving average value, and posted as an inbound ledger line per produced component.

The assembly finished-product unit cost divides the total posted value by the Yield Quantity. The total value posted — consumed component value plus labor / overhead — does not depend on yield, so a lower yield concentrates that same total value into fewer units at a higher unit cost.

Review before completing

Because completion posts the inventory and ledger result using the order’s current quantities and costs, confirm the following before you complete:

• Expected BOM quantity against the actual quantity consumed.
• Wastage against production notes or scrap records.
• Unconsumed quantity against material that was returned or kept.
• Component unit cost against the current moving average cost.
• Labor and overhead lines against the work performed.
• Yield quantity against the finished count.

If the production team has not confirmed the actual result, keep the order In Production until they do.

Common cost questions

Use these to interpret a result that looks off before you post a correction.