Showing help for:

Step by step

Choose how labour and overheads are costed

Decide how the people and the running costs of each run go into a batch's cost. As rates on the recipe, by time on the routing, spread from the month's expenses, or not at all.

Who can do it: Owner
Find it: Make, then Production orders, or search production orders in Kila
Time: 5 minutes

A batch’s cost is its materials plus a share of the wages and the running costs of the plant: power, fuel for the boiler, cleaning. Kila adds labour and overheads to every batch the way you choose, so each unit’s cost can be held against its standard.

Steps

Open Settings on Production orders
On Production orders, open the Settings tab. Only people who may change the business’s settings, such as the owner, see it.
Choose how labour and overheads are costed
Under Cost, “How labour and overheads go into the cost of each batch.”, choose for Labour and for Overheads: Rates on the recipe, By time on the routing, Spread from expenses or Not costed. The two can differ.
Steps 2 and 3 on one screen.
Set when a batch is flagged
Flag a batch costing more than its standard by is the percentage above the standard that Kila points out, on the results and on the home page’s Cost per unit against standard.
Tap Save settings
At the bottom of the page, tap Save settings. Kila says Production settings saved.

The four ways

Choice	What Kila does
Rates on the recipe	Each recipe has Labour a unit and Overheads a unit in shillings. When a run is closed, the form shows them as “At the recipe’s rate: KES …”, and you can type the run’s own figure instead.
By time on the routing	The recipe’s Routing gives “the steps on lines and machines, with minutes a unit; used when labour or overheads are costed by time.”
Spread from expenses	Kila asks for the expense accounts, such as Labour expense accounts 6010. Results then has Spread labour and overheads. With both spread at Shamba Fresh Foods it says: “The month’s expenses on accounts 6010, 6000, 6020, 6060 at each site, spread over the orders closed there by their materials cost. Shown on each batch; stock keeps its cost. Running it again replaces the month’s spread.” Choose the Month and tap Spread.
Not costed	Labour or overheads are left out of the batch’s cost.

Labour set to Spread from expenses: Kila asks for the labour expense accounts, 6010 (1).

What if

You do not see Settings

The Settings tab is for people who may change the business’s settings, such as the owner. A plant manager sees Orders, What to make, Recipes, Results and Cost centres.

A run used more labour than the recipe says

With Rates on the recipe, the plant manager types the run’s own Labour and Overheads when closing it. Left empty, the recipe’s rate is used.

Record output and close for a run of strawberry yoghurt, as the plant manager sees it: Labour and Overheads, each showing the recipe's rate as the figure used when left empty (1).

Good to know

Cost variances compares what went into stock with what was spent: Absorbed against spent shows the labour and overheads in stock against the expenses on your labour and overhead accounts.

Set up a recipe or parts list: where the rates live.
Record output and close a production order: the batch’s cost.
Read production results: cost a unit against the standard.

Next: check each recipe’s labour and overheads: Set up a recipe or parts list.

Choose how labour and overheads are costed

Steps

Open Settings on Production orders