Overview
In Traction Enterprise, input costs are calculated in three ways - Planned, Actual, & Forecasted. Inputs are talked about in more detail in Getting Started: How to setup Inputs.
In this article, we will go over how your average input costs are calculated.
Requirements
- Planned input costs entered in Setup>Inputs.
- See Getting Started: How to setup Inputs
Answer:
The average price for your Planned Input Cost is entered on Setup>Inputs page under the Price Estimates tab. The formula to calculate Planned Cost = Planned Price x Planned Usage Rate.
Example: Below the estimated or planned price for Anhydrous Ammonia for 2019 is $460/ton.
Actual Input Costs are generate on actual usage that is reported within the Work Orders or Activity Records entered in Traction Enterprise. The price shown for actual values is based on the weighted average actual price taken from your Input Deliveries. The cost is then calculate by multiplying the actual quantity reported in the Work Orders by the weighted average price.
The formula to calculate Actual Cost = Actual Price x Actual Usage Rate.
Forecasted Input Costs are based on the quantity, price, and cost taken at the task level. These values are based on the task status.
- If the Task is incomplete, the forecasted values for that task will be planned values.
- If the Task is complete, the forecasted values for that task will be actual values.
Forecasted values should represent the most up-to-date estimate of what your final costs will be at the end of the production cycle.
Related Articles:
How do I track prepaid inputs?
Getting Started: How to setup Inputs