Excel-Skills.com
100% UNIQUE EXCEL TEMPLATES
45 

Job Costing Template

Use our job costing template to compile job costings for all manufactured products by comparing actual costs to standard costs and measuring the total production variance as well as the usage & price variances on an individual job & total basis. Standard costs are based on bills of material or recipes and actual costs are based on the components issued to each manufacturing job.

  • Suitable for any type of manufacturing business
  • Create stock codes for all bought-in and manufactured products
  • Standard prices & bills of material for manufactured products
  • Create jobs for all manufactured products
  • Record actual component usage & prices for each job
  • Review actual vs standard cost and usage & price variances
  • View a summary of usage & price variances for all jobs
  • Compare actuals & standards for components & manufactured products

How to use the Job Costing template

Download the sample or trial version when reviewing these instructions

This template enables users to compile job costings for all manufactured products by comparing actual costs to standard costs and measuring the total production variance as well as the usage & price variances on an individual job and total basis. The standard costs are based on the individual standard prices that are specified for all bought-in stock items and the bills of material (“recipes”) that are compiled for each manufactured product. The actual costs are based on the components that are issued to each manufacturing job and the actual prices of all bought-in products. The template also includes a unique production variance summary report which can be used to analyse stock variances per individual stock item over any user defined period and a production forecast report which can be used for materials requirements planning (MRP) purposes.

The following sheets are included in the template:
StockCode - create unique stock codes for all bought-in and manufactured stock items and enter the stock description, unit of measure, standard cost and issue level for each stock item. The columns with light blue column headings contain formulas which include calculations of the actual job cost, job variances against standard cost (usage & price) and actual inventory cost for all stock items based on any user defined date range.
BOM - link each manufactured product to the appropriate stock components on this sheet. All the standard costs of manufactured products are calculated based on the components that have been linked to the appropriate manufactured product code on this sheet.
JSetup - create individual jobs on this sheet by entering a job number, date, stock code and required quantity in the columns with yellow column headings. The columns with light blue column headings contain formulas which calculate the actual & standard cost of each job as well as a total variance, usage variance & price variance per job.
JDetails - all job receipt and issue transactions should be entered on this sheet. Receipt transactions are used to calculate a standard value for the manufactured products that are produced and issue transactions are used to calculate the actual cost of a job. The standard cost of bought-in products can be replaced by an actual cost and multi-level bills of material can be linked to sub component jobs.
JReview - the job costing calculations on this sheet enable users to view a detailed standard & actual job costing for any job that has been created on the JSetup sheet. The sheet requires no user input – all the job cost components are automatically included based on the job number that is entered in cell D1. The sheet can accommodate a maximum of three manufactured stock items per job and includes standard & actual cost totals, a total job variance and usage & price variance calculations.
ReqPlan - the requirements planning forecast can be used to determine the stock component quantities that are required in order to produce the manufactured stock quantities that are specified on this sheet. Simply enter the appropriate manufactured product codes in column A and the required quantities in column E in order to calculate the component stock quantities in columns I to N.

Stock Codes

The first step in customizing the template for your business is to create a unique stock code for each stock component and finished (manufactured) product on the StockCode sheet. Stock components can only be linked to a manufactured product if a stock code has been created for the appropriate stock item.

Note: The contents of the StockCode sheet have been included in an Excel table. You can add a new stock code to the sheet by simply entering the appropriate stock code in the first empty cell in column A - the table will be extended automatically to include the new stock code. All the columns on the StockCode sheet with a yellow column heading require user input. The columns with light blue column headings contain formulas that are automatically copied for all new stock codes that are added to the Excel table.

A stock code convention that makes sense in the context of your business should be used and the stock code convention should make it easy to identify stock items based on the stock code that is assigned to each stock item. The template can accommodate any stock code convention but we suggest using a combination of letters and numbers. In our example, we have used a combination of four numbers and three letters for finished products and a combination of two letters and two numbers for bought-in and intermediate stock items.

Note: The two letters that are used in the bought-in and intermediate products assists users in identifying the type of stock - for example, RM refers to raw materials, LB refers to labour and SD refers to intermediate products. Note that even though labour is not actually a stock item, we also assign a stock code to labour cost in order to include this type of direct cost in the job costings. The same principle can be applied in order to include other direct costs like overheads or even distribution costs in the job costings.

Once you have decided on a stock code convention, you can create a unique stock code for each stock item that should be included in the job costings. The StockCode sheet includes the following user input columns (columns with yellow column headings):

Stock Code

Enter a unique stock code in accordance with the stock code convention that is suitable for your type of business.

Description

Enter a description of the stock item. This description should enable users to easily distinguish between stock items.

Unit of Measure (UOM)

The unit of measure (UOM) refers to the stock measurement that is used when ordering, manufacturing and counting stock. Note that stock components are also included in the job costings based on this unit of measure. For example, if the recipe of a manufactured product stipulates that a specified quantity in kilogram of a raw material stock component should be added during manufacturing, it will be easier to cost the product based on a unit of measure of kilogram even though the raw material component may be ordered from a supplier in bags. For the purpose of this template, recipe (and therefore costing) units of measure carry more weight than the units of measure that is used when ordering products from suppliers.

STD Unit Price

The most important aspect of the standard unit price is that it should be in the same unit of measure as the unit of measure that is specified in the UOM column. If a stock component is ordered from a supplier in another unit of measure, the standard unit price should be converted to the unit of measure that is specified in the UOM column. Standard unit prices should be entered excluding sales tax if the sales tax amounts can be claimed back from the appropriate tax authorities.

The standard unit price is multiplied by the input quantity which is entered on the BOM sheet in order to calculate the standard cost of the appropriate manufactured item.

Note: Standard unit prices should not be entered for manufactured products because the standard product costings of these stock items are determined based on the standard unit prices of the components that have been linked to the manufactured products on the BOM sheet. If you enter a standard unit price for a manufactured stock item, the input will have no effect on the standard costs that are calculated.

STD Issue Level

A standard issue level needs to be selected for each manufactured stock item. An issue level of either "All" or "First" can be selected from the list box. If no issue level is selected for a manufactured stock item, the issue level is assumed to be "All". Selecting an issue level for a bought-in stock item has no effect on the template calculations.

When the "All" level is selected, the template assumes that there are no jobs that will be created for intermediate products and the standard issue quantities will therefore be calculated only for the bought-in stock items which have been linked to the appropriate manufactured product on the BOM sheet regardless of how many levels of bills of material are used. This means that intermediate products will never form part of the standard issues that are calculated for a manufacturing job. Intermediate products should therefore also not be issued to a job when the "All" level has been selected for a particular product.

When the "First" level is selected, the template will assume that intermediate products will be issued to the jobs that relate to this particular product and the standard issues should therefore also be calculated based on the use of intermediate products. This means that where the product has multiple levels in its bill of material, the sub components that form part of the first level will be included in the standard issues that are calculated for all the jobs that are created for the particular product.

Example: Let's assume that we are building a garden shed and the windows have been added as an intermediate product with its own bought-in stock components of wooden frames, glass and nails. If we select the "First" level, the intermediate product of windows will be issued as part of the standard issue calculations. In order to analyse the job on a per product basis, we would therefore need to manufacture windows separately and issue the intermediate product of windows on the JDetails sheet when recording transactions against the job

Example: If we select the "All" level for the garden shed manufactured product, the bought-in components of the windows (wooden frames, glass and nails) will be issued as part of the standard issue calculations. In order to analyse the job on a per product basis, the manufacturing of windows will therefore form part of the same job as the manufacturing of the entire garden shed and the individual bought-in products must be recorded as issues on the JDetails sheet in order to analyse the variances on a per product basis.

Note: The "First" level should therefore be selected for all manufactured products where the intermediate components form part of a separate manufacturing process for which separate jobs are going to be created.

Note: If the bill of material for a product contains no intermediate products, we recommend that the "All" level is selected for the appropriate product.

The standard issue level is assigned on an individual stock code basis which means that the template can be used to analyse jobs on an "All" level as well as a "First" level for manufactured products. Some products can therefore be designated as "First" level manufactured products (thereby using intermediate level manufacturing processes) while others can still be assigned an "All" level manufacturing process. The template does not however cater for the same product being manufactured on both standard issue levels.

Note: All the columns on the StockCode sheet with a yellow column heading require user input. The columns with light blue column headings contain formulas that are automatically copied when you add a new stock code in the first empty cell in column A. The following columns contain formulas:

Error Code

The formulas in this column display an error code if there is a problem with the data that has been entered in any of the user input columns. This column should therefore not contain any error codes if all user input has been entered correctly. If any error codes are reflected in this column, the errors should be investigated and rectified in order to ensure that all template calculations remain accurate. Refer to the Error Codes section of these instructions for guidance on how to correct the appropriate user input errors.

Product Type

This column indicates whether a stock code relates to a stock item that is bought-in from a supplier or to a product that is manufactured. A product costing should be compiled for all manufactured products by linking the manufactured product and its components on the BOM sheet. The formula that has been entered in this column therefore checks whether the stock code is included in column A on the BOM sheet and if so, identifies the product as a manufactured product. Alternatively, the product is deemed to be a bought-in product.

Note: Manufactured products will only be deemed to be manufactured if they are included on the BOM sheet. If a product which is supposed to be a manufactured product is indicated as a bought-in product, you have probably not added the product to the BOM sheet.

BOM Type

This column indicates which type of bill of material has been added for a product. If the product is a manufactured product and it is not included as a component in any other bills of material on the BOM sheet, the BOM type will be a finished goods product type (FG).  If the product is a manufactured product and it is included as a component in another bill of material on the BOM sheet, the BOM type will be an intermediate product type (IM). If the product is a bought-in product, the BOM type will be "None".

Product Cost

This column contains the product cost of each stock code. If a product is classified as a bought-in stock item, the product cost equals the standard unit price which is specified in column D. If the product is classified as a manufactured product, the product cost is calculated based on the components that have been linked to the product on the BOM sheet and the appropriate standard unit prices, input quantities and yields of the linked components. The Product Cost column therefore contains the standard costs of all stock items.

Job Qty Required

This column contains the component quantity which is required in order to produce the job number which has been selected in cell D1 on the JReview sheet. The values in this column are used in the compilation of the JReview sheet.

Job Std Issued

This column contains the component quantity which needs to be issued based on the job receipts which have been recorded on the JDetails sheet and the job number which has been selected in cell D1 on the JReview sheet. The values in this column are used in the compilation of the JReview sheet.

Job Qty Issued

This column contains the component quantities which have been issued by recording stock issue transactions on the JDetails sheet against the job number which has been selected in cell D1 on the JReview sheet. The values in this column are used in the compilation of the JReview sheet.

Job Review Status

This column indicates which components need to be included on the JReview sheet and the status is only used in the compilation of the JReview sheet.

Req Plan Qty

This column contains the component quantities which are required in order to produce the products which have been included on the ReqPlan sheet. The values in this column are only used in the compilation of the ReqPlan sheet.

Req Plan Status

This column indicates which components need to be included on the ReqPlan sheet and the status is only used in the compilation of the ReqPlan sheet.

All of the following columns contain formulas which affect the calculations that are included in our unique production variance report which is included on the StockCode sheet from columns P to AB. The production report is based on the From and To dates that are specified in cells P2 and R2 respectively.

Received Qty

The values in this column indicate the total quantity that has been received for a particular stock code by entering job receipt transactions on the JDetails sheet.

Issued STD Qty

This column indicates the total component quantities which needed to be issued in order to produce the total quantities which have been received as per column P. This is the standard quantities which needed to be issued based on the bills of material which are included on the BOM sheet and are based on the input quantities and yields which have been specified for each manufactured product.

Issued Actual Qty

This column indicates the total quantity which has actually been issued to a manufacturing job during the applicable date range. Actual job issues are recorded by entering a job issue transaction on the JDetails sheet.

Usage Var Qty

This is the difference between the standard and actual issue quantities and represents the total usage variance quantities for all jobs that fall within the specified date range.

RecValue @STD

The values in this column represent the total standard cost value of all stock receipt transactions which have been entered on the JDetails sheet for the appropriate manufactured stock item.

Note: The value of transactions that relate to intermediate stock items will be excluded to the extent that the intermediate products were manufactured (receipt transactions) and issued to other manufacturing jobs (issue transactions) during the same review period. This adjustment is necessary in order for production values not to be duplicated and therefore overstated.

IssueValue @STD

The values in this column represent the total standard cost value of all stock component issues which are required in order to produce the receipted quantities in column P. These values are based on the input quantities and yields which have been specified on the BOM sheet. The total of this column will always be the same as the  RecValue @STD column (although the value will be negative in this column).

Note: The value of transactions that relate to intermediate stock items will be excluded to the extent that the intermediate products were manufactured (receipt transactions) and issued to other manufacturing jobs (issue transactions) during the same review period. This adjustment is necessary in order for production values not to be duplicated and therefore overstated.

RecValue @Actual

The values in this column represent the total actual cost value of all stock receipt transactions which have been entered on the JDetails sheet for the appropriate manufactured stock item. For intermediate products, the value in this column will be the difference between the total receipted actual value and the total issued actual value.

Note: The value of transactions that relate to intermediate stock items will be excluded to the extent that the intermediate products were manufactured (receipt transactions) and issued to other manufacturing jobs (issue transactions) during the same review period. This adjustment is necessary in order for production values not to be duplicated and therefore overstated.

Note: If multiple manufactured products are linked to the same job, the values in this column will be nil. This is because it is impossible to determine what the actual cost of multiple manufactured products are if these multiple manufactured products are linked to the same job.

IssueValue @Actual

The values in this column represent the total actual cost value of all stock component issue transactions which have been recorded on the JDetails sheet. The total of this column will be the same as the  RecValue @Actual column (although the value will be negative in this column) but not if multiple manufactured products are linked to the same job or when the job link feature on the JDetails sheet is used to link a component to a job cost which is not equal to the average actual cost of the component for the period under review.

Note: The value of transactions that relate to intermediate stock items will be excluded to the extent that the intermediate products were manufactured (receipt transactions) and issued to other manufacturing jobs (issue transactions) during the same review period. This adjustment is necessary in order for production values not to be duplicated and therefore overstated.

Total Var Value

The values in this column represent the difference between the standard issue values and the actual issue values. If a value is positive, it means that the actual component cost is lower than the standard component cost and if the value is negative, it means that the actual component cost is higher than the standard component cost.

Usage Var Value

The values in this column indicate the total usage variance value for each component. Positive values represent positive variances (actual usage lower than the standard) and vice versa.

Price Var Value

The values in this column indicate the total price variance value for each component. Positive values represent positive variances (actual usage lower than the standard) and vice versa. Actual prices are determined by the cost per unit which is specified in column E on the JDetails sheet when recording job issue transactions.

Actual Unit Cost

The values in this column indicate what the average actual cost of each component is for the period under review. If only one manufactured product is linked to a job, the actual costs are calculated based on the issue transactions which have been entered on the JDetails sheet.

For bought-in products, the average actual cost will be the average cost which has been issued for the component on the JDetails sheet. For manufactured products, the average actual cost will be the total value of all components which have been issued to jobs that relate to the manufacturing of the appropriate item divided by the quantity that has been received.

If more than one manufactured product has been linked to a single job, the actual prices which are entered on the JDetails sheet for bought-in stock items are multiplied by the standard input quantities & yields in order to calculate an average actual cost which is only representative of actual price variances. Usage variances are ignored for the purpose of this calculation because it is impossible to calculate the usage variances for individual manufactured products when multiple products have been linked to the same job.

Note: All actual average cost calculations are based on a date range which includes the first transaction date which has been included on the JDetails sheet and the To date which has been entered on the StockCode sheet. If no To date has been specified, the date range will end on the last day of the current calendar month (based on the system date of your computer).

Unit Cost % Variance

The percentages in this column represent the difference between the standard unit costs in column I and the average actual unit costs in column AA. Positive values represent positive variances (actual cost is lower than the standard) and vice versa.

The following section covers some important points that users should take note of regarding the production variance report.

Reporting Dates

The production, quantities, values and variances on the StockCode sheet (columns P to Z) are all based on the From and To dates which are specified in cells P2 and R2. The calculations in these columns will therefore change when new From and To dates are entered in these cells.

If no From date is specified (cell P2 is blank), the From date will default to the first date which has been entered on the JDetails sheet and the report will therefore include all jobs. If no To date is specified (cell R2 is blank), the report will default to the last day of the current calendar month (based on your computer's date settings).

Note: The To date which is specified in cell R2 must always be after the From date which is specified in cell P2. If this is not the case, an error message will be displayed.

The date functionality enables users to run the production variance report for any user defined date range which can include single or multiple jobs based on the job receipt and issue transactions which have been entered on the JDetails sheet.

Note: The From date plays no role in the average actual cost calculations in column AA. Only the To date which is specified in cell R2 is included in these calculations. This means that the average actual cost will always be calculated based on all the jobs that precede the To date.

Standard Cost & Average Actual Cost Values

When you amend the standard unit prices of bought-in products on the StockCode sheet or the input quantities and yields on the BOM sheet, you are effectively revaluing your standard costs for the affected manufactured products. The standard costs are used in order to compare actual job costs to standard job costs and amendments to these standard values will therefore also affect all job comparisons to date.

We therefore recommend that you save a new version of the template before any significant change in the standard cost values. This will ensure that all jobs that have been completed up to that date remains compared to the standard values which were in effect at the time.

We recommend that new versions of the template are created regularly by adjusting standard cost values based on previous actual cost comparisons. The frequency of these updates does however depend on the costing methodology that is applied and the significance of fluctuations in component pricing.

The average actual cost which is calculated in this template is based on all the jobs that are included on the JSetup sheet. It therefore makes sense to "refresh" these average costs from time to time by saving a new version, amending the standard cost basis (if necessary), clearing the contents of the JSetup and JDetails sheets (user input columns only) and recording new jobs on these sheets.

Note: Do not delete any of the formulas in the columns with light blue column headings because this would result in inaccuracies in the template calculations. You can delete rows that are not required but you should always retain at least two rows in these columns.

General Info

The totals above the column headings have been calculated by using a SUBTOTAL function. This means that if you filter the StockCode sheet, only the cells that are visible on the sheet will be included in these calculations.

As we've mentioned before, the value of transactions that relate to intermediate stock items will be excluded from the report to the extent that the intermediate products were manufactured (receipt transactions) and issued to other manufacturing jobs (issue transactions) during the same review period. This adjustment is necessary in order for production values not to be duplicated and therefore overstated.

Note: Components are listed on the job costing review (JReview sheet) in the same order in which they appear on the StockCode sheet. If all stock components are therefore sorted in an ascending order by the stock code, the components will also be displayed in this order on the JReview sheet.

Bills of Material

The purpose of the BOM sheet is to create a link between stock components and manufactured products. This is accomplished by entering the appropriate stock code of the manufactured product in column A and entering the stock code of the appropriate component in column B. Multiple stock components can be added to a single manufactured product in order to create a product costing which consists of multiple stock components.

Note: Columns A and B both contain list boxes that include all the stock codes that have been created on the StockCode sheet. You therefore need to create a stock code for each manufactured or component product before you will be able to select the appropriate stock code from the list boxes in these columns.

Note: The contents of the BOM sheet have been included in an Excel table. You can add a new stock component to the sheet by simply selecting the appropriate product code from the list box in the first empty cell in column A - the table will be extended automatically to include the new product code. All the columns on the BOM sheet with a yellow column heading require user input. The columns with light blue column headings contain formulas that are automatically copied for all new stock components that are added to the Excel table.

The BOM sheet includes the following user input columns (columns with yellow column headings):

Product Stock Code

The stock code of the manufactured product to which the stock component should be added needs to be selected from the list box in this column. The list box includes all the stock codes that have been created on the StockCode sheet. The product stock code should be repeated for all the components that are used in the manufacturing process. For example, if 10 components are required in order to produce a particular manufactured product, you need to add 10 different component stock codes in column B in 10 separate rows and repeat the product stock code in column A in each of these rows. All 10 component stock codes will then be linked to the same manufactured product and will be included in the same product costing.

Note: Product stock codes and components do not need to be grouped together on the BOM sheet (by the product stock code) when entering data but we recommend this approach because it will make it easier to identify components which have been duplicated. You can also sort the BOM sheet first by the product code in column A and then by the component code in order to reflect your standard costing records in this order.

Component Stock Code

A component stock code needs to be selected from the list box in column B for each component that is used in manufacturing the product which has been selected in column A. The standard cost of a manufactured product for job costing purposes is calculated based on the costs of all the components that have been linked to a manufactured product on the BOM sheet.

Note: A very efficient method of adding components to a manufactured product is by copying the components from a similar product, selecting the appropriate new product code from the list box in column A and editing the input quantities and yields of all the components. This method will however only be efficient if components have previously been added to a similar manufactured product on the BOM sheet.

Input Quantity

The input quantity of the stock component that is used in the manufacturing process should be entered in column C. This quantity should be entered in the same unit of measure that is specified for the particular stock code on the StockCode sheet (the component UOM is listed in column J).

Note: The unit of measure (UOM) of the manufactured product is listed in column G. If the unit of measure of the manufactured product is "Units", the input quantity of the component should be sufficient in order to produce 1 unit of the manufactured product but if the unit of measure of the manufactured product is for example "Dozen", the input quantity that is entered should be sufficient in order to produce 12 units of the manufactured product.

Note: The yield basis should also be taken into account when determining the appropriate component input quantity. If the yield that is entered in column D is based on an Input basis, the component quantity that is added at the beginning of the manufacturing process should be entered in column C. If however the yield is based on an Output basis, the component quantity that remains at the end of the manufacturing process should be entered in column C. This is because the input quantity is divided by the yield as part of the component cost calculation.

Note: You may also want to consider entering a calculation in the input quantity column because this approach may make it easier to determine how the input quantity has been calculated (if a calculation has been necessary). For example: if the component unit of measure is dozen and only one unit is used in the manufactured product, the component quantity is calculated by dividing 1 dozen by twelve. You therefore have the option of entering 0.083333 as the input quantity or you can enter the formula "=1/12" in the input quantity column.

Yield

The component yield should be entered in column D as a percentage. The input quantity that is entered in column C is divided by the yield in column D in order to determine the component quantity that is required in order to produce the manufactured product. Yields can be determined on an Input or an Output basis - the difference between the two bases is best explained by a definition and a few examples.

Definition: The inherent nature of a manufacturing process may result in the component quantity at the end of the manufacturing process being less than the component quantity that is introduced at the start of the manufacturing process. The quantity difference can be described as a yield loss. The Input basis refers to the component quantity that is introduced at the start of the manufacturing process, while the Output basis refers to the component quantity which remains after the manufacturing process has been completed.

Note: If there is a significant yield loss during the manufacturing process and the incorrect yield basis is used to determine the yield that is entered in column D, the product costing of the manufactured product may be inaccurate. As we've mentioned before, the yield basis also affects the input quantity that needs to be entered. It is therefore important to take the yield basis into account when determining the component input quantity that needs to be entered in column C.

Example: If we use minced meat in the manufacturing of a beef burger, we have to decide on a yield basis before we can determine the appropriate input quantity that should be specified. If our aim is to produce a 400g burger at the end of the manufacturing process, the quantity is based on the output after manufacturing. We may know that on average 500g of minced meat is required in order to produce a 400g burger at the end of the manufacturing process - the 500g is therefore the Input based quantity. The manufacturing yield can therefore be calculated as 400g divided by 500g which is 80%. If we include a yield of 80% in the product costing, we need to include the output weight (400g) as the input quantity in the costing. The meat component cost is therefore calculated by dividing the 400g by 80% thereby effectively including 500g of meat in our beef burger product costing. If we use the Input basis in our product costing, an input quantity of 500g and yield of 100% should be entered (assuming that there is no meat yield loss prior to the start of the manufacturing process).

Example: Our example beef burger includes one slice of onions. With this component, we are not really concerned about the output weight because we have already decided that only one slice of onions will be included on our beef burger. The unit of measure of the onions component is kilogram and we therefore need to calculate the input quantity of this component based on how many slices are included in a kilogram of onions. The quantity that represents one slice then needs to be entered in the Input Quantity column. In principle, we are calculating the input quantity based on the Input yield basis and the yield therefore needs to be entered as 100%. We do however know that after the slicing process is completed, 5% of the onions that we purchased do not end up as sliced onions and is therefore lost before the start of the manufacturing process. We also need to take this yield loss into account in order to compile an accurate beef burger product costing. A yield of 95% is therefore entered even though we used the Input basis in determining the appropriate component input quantity.

Note: All the columns on the BOM sheet with a yellow column heading require user input. The columns with light blue column headings contain formulas that are automatically copied when you add a new stock code in the first empty cell in column A. The following columns contain formulas:

Error Code

The formulas in this column display an error code if there is a problem with the data that has been entered in any of the user input columns. This column should therefore not contain any error codes if all user input has been entered correctly. If any error codes are reflected in this column, the errors should be investigated and rectified in order to ensure that all template calculations remain accurate. Refer to the Error Codes section of these instructions for guidance on how to correct the appropriate user input errors.

Product Description , Product UOM

These two columns are included on the BOM sheet to enable users to view the description of the product stock codes that are selected in column A and to ensure that the correct unit of measure is used when entering component input quantities.

Product Level

This column indicates the bill of material level which has been assigned on the StockCode sheet for the product stock code that has been selected in column A. The bill of material level determines whether intermediate products are issued on a job for standard costing purposes and should be aligned to the way in which actual components will be included in a manufacturing job.

Note: If a BOM level of all is assigned to a product, it means that the product is produced in a single manufacturing process and that only bought-in items will be issued to the job. If a first level is selected for the product, it means that the intermediate products that form part of the product's bill of material will be produced through separate manufacturing processes (and therefore jobs) and that the intermediate products will be issued to the job.

Component Description , Component UOM

These columns are included to enable users to view the description of the component codes that are selected in column B and to ensure that the correct unit of measure is used when entering component input quantities.

Component Type

This column reflects the type of component that has been selected in column B. If the component type is "Bought-in", it means that the component is purchased from a supplier. If the component type is "Manufactured", it means that the component is an intermediate product which needs to be manufactured.

Comp Incl Status

This column contains the status of a component based on the product level that has been selected and is only used for report calculation purposes.

Bought-In Price

If the component is a bought-in stock item, the standard unit price of the component which is specified on the StockCode sheet will be included in this column. If the component is a manufactured stock item, the bought-in price will be nil and the component cost will be based on the calculations in the intermediate columns.

Bought-In Cost

The bought-in cost of components is calculated by multiplying the bought-in price of the component by the input quantity in column C and dividing the result by the yield in column D.

Intermed Comp Cost

If the component that has been selected in column B is a manufactured product, the component cost in this column is determined based on the product cost of the intermediate product which is calculated in column Q. Note that the component cost is calculated as the sum of all the product costs of components that are linked to the intermediate product on the BOM sheet. If the component is a bought-in product, the intermediate component cost of the product will be nil.

Intermed Prod Cost

The intermediate product costs of components are calculated by multiplying the intermediate component cost of the component by the input quantity in column C and dividing the result by the yield in column D.

Product Cost

If the component is a bought-in product, the component product cost will be equal to the component bought-in cost. If the component is an intermediate product, the component cost will be equal to the intermediate product cost. Note that the product cost of the manufactured product that has been selected in column A will be equal to the sum of all the component product costs that are calculated for the particular product in this column.

Actual UnitCost

If the component is a bought-in stock item, the actual unit cost of the component which is calculated in column AA on the StockCode sheet will be included in this column. If the component is a manufactured stock item, the actual unit cost will be nil and the component actual cost will be based on the calculations in the intermediate columns.

Actual Comp Cost

The actual component cost in this column is calculated by multiplying the actual unit cost of the component by the input quantity in column C and dividing the result by the yield in column D.

Intermed Actual Cost

If the component that has been selected in column B is a manufactured product, the actual intermediate component cost in this column is determined based on the actual cost of the intermediate product which is calculated in column V. Note that the actual component cost is calculated as the sum of all the actual costs of components that are linked to the intermediate product on the BOM sheet. If the component is a bought-in product, the actual intermediate component cost of the product will be nil.

Intermed Total Cost

The actual intermediate costs of components are calculated by multiplying the actual intermediate component cost in the previous column by the input quantity in column C and dividing the result by the yield in column D.

Actual Prod Cost

If the component is a bought-in product, the component actual cost will be equal to the component actual unit cost. If the component is an intermediate product, the component actual cost will be equal to the intermediate actual cost. Note that the actual cost of the manufactured product that has been selected in column A will equal the sum of all the component actual costs that are calculated for the particular product in this column.

Note: The actual cost calculations on the BOM sheet are only used when multiple products have been assigned to a manufacturing job. If only one manufactured product is assigned to each job, the actual unit costs are calculated purely based on the job issue transactions which are entered on the JDetails sheet.

Level1 TotIssued to Level6 TotIssued

These columns are used to calculate the standard issues of all bought-in and intermediate products based on the received quantities of all manufactured products that have been entered on the JDetails sheet. The total standard quantities issued in column Q on the StockCode sheet are based on the calculations in these columns.

Level1 JobRequire to Level6 JobRequire

These columns are used to calculate the standard issues of all bought-in and intermediate products based on the required quantities on the job that is currently selected on the JReview sheet. The total standard quantities issued in column D on the JReview sheet are based on the calculations in these columns.

Level1 JobReceipt to Level6 JobReceipt

These columns are used to calculate the standard issues of all bought-in and intermediate products based on the received quantities of the job that is currently selected on the JReview sheet. The total standard quantities issued in column E on the JReview sheet are based on the calculations in these columns.

Level1 ReqPlan to Level6 ReqPlan

These columns are used to calculate the standard issues of all bought-in and intermediate products based on the production forecast quantities of all manufactured products that have been entered in columns A to G on the ReqPlan sheet. The total component quantities required in columns I to N on the ReqPlan sheet are based on the calculations in these columns.

The following section covers some important points that users should take note of regarding the bills of material on the BOM sheet.

Labour & Direct Overheads

For the purpose of compiling product costings, stock codes also need to be created for all labour, direct overheads and even distribution costs that need to be included in the product costings. These stock codes should be seen as cost centre codes instead of stock codes which are represented by physical stock on hand.

The appropriate labour pay rates or overhead allocation rates should be entered in the standard unit price column on the StockCode sheet and the appropriate production times should be entered in the input quantity column on the BOM sheet. A 100% yield should be entered for all labour and overhead costs.

Example: A beef burger is manufactured in a kitchen that consists of 3 staff members. The labour rate is $10.00 per hour and a total of 400 beef burgers are produced during a shift of 8 hours. In order to add the labour component to the beef burger product costing, we need to create a stock code for labour on the StockCode sheet (in our example data, all labour related stock codes start with an "LB"), enter a UOM of hours for the stock code, enter the $10 per hour as the standard unit price of the stock code, add the labour component code to the beef burger bill of material on the BOM sheet, calculate the production time (3 staff members multiplied by 8 hours in a shift and divided by the 400 beef burgers that are produced), enter the production time as the input quantity of the labour component on the BOM sheet and enter a yield of 100% on the BOM sheet.

You can create multiple labour stock codes on the StockCode sheet if there are different labour rates for different staff members. All the applicable labour stock codes then need to be added separately on the BOM sheet. Additional stock codes do not need to be created if only the production time (input quantity) differs between products because different production times can be accommodated by entering different input quantities for each product on the BOM sheet. It is only when the labour pay rates differ that separate stock codes are required.

Example: Direct overheads or distribution costs can also be added to the product costings by creating a stock code for each type of overhead. We suggest that you compile a monthly forecast of all the appropriate costs, determine the average number of units that are produced on a monthly basis, calculate the overhead rate by dividing the forecasted monthly amount by the number of units, create a stock code for the appropriate type of direct overhead cost on the StockCode sheet, enter a UOM of "Units", enter the overhead rate as the standard unit price, add the overhead stock code as a component on the BOM sheet for all the applicable products and enter an input quantity of 1 and a yield of 100% on the BOM sheet.

Job Set-up

All manufacturing jobs need to be set up on the JSetup sheet by assigning a unique job number to the job, entering a date, selecting the appropriate stock code(s) for the manufactured items that need to be produced and entering a required quantity for the manufactured stock item.

The template accommodates any job numbering convention and the format that is supplied in our examples does not need to be used. It is only important that each manufacturing job is assigned a unique job number.

We recommend that you only include one manufactured product per job number. If this approach is followed, the actual cost of each job can be calculated with 100% accuracy but the template does accommodate a maximum of three manufactured products which can be added to a single job (this limitation only applies to the layout of the JReview sheet and can easily be customized to include more manufactured products).

If multiple manufactured products are assigned to the same job number, it will not be possible to calculate an actual cost for each of the manufactured products because the components that are issued to the job are not linked to a particular manufactured product. The actual job cost can therefore be calculated accurately (based on the components which have been issued to the job on the JDetails sheet) but the actual cost per manufactured product cannot be calculated with 100% accuracy.

Note: If any one job is linked to multiple manufactured products, the template calculations will switch to the Multiple mode and the actual product costs of manufactured products will be estimated instead of being calculated with 100% accuracy. The template mode is reflected in cell U1 on the JSetup sheet.

Assigning multiple manufactured products to the same job will only really be necessary if more than one manufactured product is produced in the same production process. This may be the case if multiple product variations are produced simultaneously or if one or more by-product is produced as part of the manufacturing process of a main product. Under these circumstances, switching the template to the Multiple mode is unavoidable.

We believe that there would still be some value that can be derived from calculating an estimated actual cost for all manufactured products when in the Multiple mode even though this estimated value cannot be a 100% accurate actual cost. The most practical approach in estimating an actual cost in the Multiple mode would be to use the average actual costs of bought-in products and to include these prices in the existing bills of material in order to calculate an estimated actual cost which is based on actual prices and standard usages.

When the template is therefore switched to the Multiple mode, the estimated average costs of manufactured and intermediate products will be reflected in column AA on the StockCode sheet. The JReview sheet will not however include an actual cost because the calculations are performed for an entire date range and not based on a single job. The total actual cost of the job on the JReview sheet will however not be based on an estimated calculation and will therefore be 100% accurate.

Note: The contents of the JSetup sheet have been included in an Excel table. You can add a new job to the sheet by simply entering the appropriate job number in the first empty cell in column A - the table will be extended automatically to include the new job. All the columns on the JSetup sheet with a yellow column heading require user input. The columns with light blue column headings contain formulas that are automatically copied for all new jobs that are added to the Excel table.

Note: The totals above the column headings have been calculated by using a SUBTOTAL function. This means that if you filter the JSetup sheet, only the cells that are visible on the sheet will be included in these calculations.

The JSetup sheet includes the following user input columns (columns with yellow column headings):

Job No

Enter a unique job number in this column. The job number needs to be repeated in this column if multiple manufactured products are being linked to the same job number. You can use any job numbering convention.

Date

Enter the date on which the job is completed in this column and repeat the date if multiple manufactured products are linked to the same job.

Stock Code

Select the stock code of the product that is being manufactured in this column. All stock codes need to be added to the StockCode sheet before being available for selection on this sheet.

Qty Required

Enter the quantity that is required to be made in this column. This quantity does not have a direct impact on the standard or actual costs but is used to determine the component requirements on the JReview sheet in column D. You can therefore use the quantities in column D on the JReview sheet for materials requirement planning (MRP) purposes on an individual job level.

Note: All the columns on the JSetup sheet with a yellow column heading require user input. The columns with light blue column headings contain formulas that are automatically copied when you add a new job number in the first empty cell in column A. The following columns contain formulas:

Error Code

The formulas in this column display an error code if there is a problem with the data that has been entered in any of the user input columns. This column should therefore not contain any error codes if all user input has been entered correctly. If any error codes are reflected in this column, the errors should be investigated and rectified in order to ensure that all template calculations remain accurate. Refer to the Error Codes section of these instructions for guidance on how to correct the appropriate user input errors.

Stock Description

The description of the stock code which has been selected in column C is displayed in this column. You can use the description in order to check whether the correct stock code has been selected.

Product Type

This column contains the product type of the selected stock code. Only manufactured products should be linked to jobs on this sheet. If the product type is displayed as bought-in, you need to check the BOM sheet to determine whether components have been added to the selected stock code on that sheet. If no components have been added, a review of standard and actual job costs will not be possible.

BOM Type

This column indicates whether the manufactured product is a finished good (FG) or an intermediate product (IM). If the stock code is not a manufactured item, the BOM type will be "None".

Qty Received

The total quantities received for the stock code in column C and the job number in column A is displayed in this column. All job receipts should be recorded on the JDetails sheet.

Job Balance

The difference between the required quantity and received quantity is indicated in this column. This value indicates whether a surplus or shortfall in production of the stock code in column C has occurred. For most jobs, this value should be nil because the aim is to produce the required quantity in column D.

STD UCost

This column contains the standard unit cost of the product which has been selected in column C. The standard unit cost is calculated based on the standard unit cost of the bought-in components as specified in column D on the StockCode sheet and the components which have been linked to the product and any intermediate products which form part of the product structure on the BOM sheet.

Actual UCost

The actual unit cost of a product is calculated by dividing the total job issues on the JDetails sheet by the quantity that has been received. The actual unit cost is only displayed if only one product is linked to any individual job, otherwise "n/a" will be displayed in this column.

UCost Diff%

This is the difference between the standard and actual unit cost in percentage terms. A positive value indicates a positive variance (actual cost lower than standard cost) and vice versa.

STD Value

The standard value is calculated by multiplying the quantity received by the standard unit cost and represents the total standard cost value that has been received on the manufacturing job.

Job STD

The job standard equals the standard value of the job when only one product is linked to each manufacturing job. When multiple products are linked to the same manufacturing job, the job standard will equal the total of all the standard values that have been linked to the same job.

Job Actual

The total actual cost of the job will be displayed in this column. Where more than one manufactured product is linked to the same job, this value will only be displayed in the first line of each job. The total actual job cost is calculated based on all the job issue transactions which have been recorded on the JDetails sheet.

Job Var

The difference between the standard job cost and actual job cost is displayed in this column. Where more than one manufactured product is linked to the same job, this value will only be displayed in the first line of each job.

Job Usage

The job usage variance is calculated in this column. Usage variance values are defined as the difference between the standard and actual quantities used multiplied by the standard cost of the component. The standard quantity used is calculated based on the input quantities and yields on the BOM sheet and the actual quantities used is calculated based on the job issue transactions which are recorded on the JDetails sheet. Where more than one manufactured product is linked to the same job, this value will only be displayed in the first line of each job.

Job Price

The job price variance is calculated in this column. Price variance values are defined as the difference between the standard and actual component prices multiplied by the actual quantity used. The standard component prices are specified in column D on the StockCode sheet and the actual prices are recorded on the JDetails sheet when entering job issue transactions. Where more than one manufactured product is linked to the same job, this value will only be displayed in the first line of each job.

Job Date

The job date is determined based on the date that has been entered in column B.

JUnique

This column contains a value which is used in order to determine whether the template needs to be set to the multiple or single product per job mode. If more than one product has been linked to a single job, the template will automatically switch to the multiple mode and the status will be reflected in cell U1.

Note: All job numbers need to be created on the JSetup sheet before any job transactions are entered on the JDetails sheet otherwise the template calculations will not be accurate.

Note: If the template mode in cell U1 is indicated as Multiple and your intention is not to link more than one product to a single job, you can review the JUnique column for any nil values which would indicate that the appropriate job has been linked to more than one product. If you edit the job number in column A or delete the incorrect row, the template will automatically switch back to the Single mode.

Job Transactions

All job related transactions must be entered on the JDetails sheet by entering a job number, selecting a transaction type, selecting the appropriate stock code and entering a transaction quantity. The sheet also contains functionality which enables users to override the standard unit price with an actual unit price and to link the component cost of a manufactured product to a job that was previously recorded.

All job numbers must be created on the JSetup sheet before being used on the JDetails sheet. If you add a job number on the JDetails sheet which has not been included on the JSetup sheet, the template calculations will not be accurate. It is also imperative that all transactions are recoded against the correct job number.

Only two transaction types can be recorded on the JDetails sheet. Receipt transactions should be recorded for the quantities that are produced of a manufactured product (as positive values). Issue transactions should be recorded for all components that are used in the manufacturing process - positive and negative values can be recorded. You can therefore record the total quantities that have been issued to production as negative values and record the total quantities that are received back from production at the end of a shift as positive values. The net job issue value per component should however always be a negative value.

The standard component cost per unit for job issue transactions can be overridden by entering a new actual cost in column E and selecting the "Yes" option from the list box in column F (only applies to bought-in type components). Actual price adjustments will not have any effect if entered for receipt type transactions or for manufactured products (intermediate components).

The standard unit cost of manufactured products (intermediate components) can be linked to a job which was previously completed by simply entering the appropriate job number in column G. If the job number that is entered does not exist or if the product was not manufactured during the completion of the specified job, the job number input will have no effect on the actual transaction value.

The actual job issue value of a manufactured product which is issued on a job (therefore an intermediate product) will be calculated based on the job number to which the component has been linked (in column G). If no job link has been applied to the transaction, the actual average cost of production which is calculated in column R will be used. If the appropriate product has not been manufactured previously, the standard unit cost will be used in the transaction value calculation.

Note: The contents of the JDetails sheet have been included in an Excel table. You can add a new job transaction to the sheet by simply entering the appropriate job number in the first empty cell in column A - the table will be extended automatically to include the new transaction. All the columns on the JDetails sheet with a yellow column heading require user input. The columns with light blue column headings contain formulas that are automatically copied for all new job transactions that are added to the Excel table.

Note: The totals above the column headings have been calculated by using a SUBTOTAL function. This means that if you filter the JDetails sheet, only the cells that are visible on the sheet will be included in these calculations.

The JDetails sheet includes the following user input columns (columns with yellow column headings):

Job No

Enter the job number to which the job transaction relates. All job numbers must be created on the JSetup sheet before being used on the JDetails sheet.

Type

Select the transaction type from the list box. Only two transaction types can be recorded on the JDetails sheet. Receipt transactions should be recorded for the quantities that are produced of a manufactured product (as positive values). Issue transactions should be recorded for all components that are used in the manufacturing process - positive and negative values can be recorded. You can therefore record the total quantities that have been issued to production as negative values and record the total quantities that are received back from production at the end of a shift as positive values. The net job issue value per component should however always be a negative value.

Stock Code

Select the appropriate stock code for the transaction from the list box. Only stock codes which have been added to the StockCode sheet are available for selection.

Quantity

Enter the transaction quantity. Stock receipt transactions should be entered as positive values. Stock issue transactions can be recorded as both negative values (quantity issued to production) and positive values (quantity received back from production). The net total per stock code should however be a negative value.

Cost PU

If you want to override the standard unit cost with an actual cost, enter the actual cost of the component in this column. This column only applies to stock issue transactions for bought-in items - if you enter a value for a receipt transaction or for a manufactured stock item, the value will have no effect.

Override?

The actual costs that are entered in column E are only used to override the standard unit cost if the "Yes" option is selected from the list box in this column.

Job Link

Enter the job number to which a manufactured product's actual cost should be linked. You can use any job number which has previously been used but the link will only come into effect if the job number exists and the stock code which has been selected in column C was produced on the specified manufacturing job. Job links only apply to stock issue transactions and should therefore only be used to override the standard cost of an intermediate product with an actual unit cost which is determined by the job link.

Note: All the columns on the JDetails sheet with a yellow column heading require user input. The columns with light blue column headings contain formulas that are automatically copied when you add a new job number in the first empty cell in column A. The following columns contain formulas:

Error Code

The formulas in this column display an error code if there is a problem with the data that has been entered in any of the user input columns. This column should therefore not contain any error codes if all user input has been entered correctly. If any error codes are reflected in this column, the errors should be investigated and rectified in order to ensure that all template calculations remain accurate. Refer to the Error Codes section of these instructions for guidance on how to correct the appropriate user input errors.

Description

The description of the stock code which has been selected in column C is displayed in this column. You can use the description in order to check whether the correct stock code has been selected.

Product Type

This column contains the product type of the selected stock code. Only manufactured products should be linked to job receipt transactions while both manufactured (intermediate) and bought-in products can be linked to job issue transactions.

UOM

The unit of measure (UOM) of the stock code which has been selected in column C is displayed in this column. All stock quantities should be entered based on this UOM which is defined for each stock code on the StockCodes sheet. If quantities are issued to production in a different unit of measure, the quantities need to be converted to the unit of measure which is indicated in this column.

STD Cost

The standard unit cost of the stock code which has been selected in column C is included in this column.

Unit Price

The actual unit price of the transaction will be included in this column. The unit price for all job receipt transactions will equal the standard unit cost. The unit price for job issue transactions is determined based on the product type.

For bought-in products, the unit price will equal the standard unit cost if the actual cost has not be overridden by a user defined cost in column E and the "Yes" option selected in column F.

For manufactured (intermediate) products, the unit price is determined by the job to which the product has been linked. If no job link has been included in column G, the unit price will equal the average actual cost which is included in column R. If the product has not been produced previously and no average actual cost is therefore reflected in column R, the unit price will equal the standard unit cost of the product.

TrnValue

The transaction value is calculated by multiplying the quantity in column D by the unit price in column M.

Price Var

The price variance values in this column are calculated as the difference between the standard unit cost and the actual unit price. Positive values represent positive price variances and vice versa.

Job Date

The job date is specified when creating a job number on the JSetup sheet.

JobLink Cost

If a job link has been specified for the selected stock item in column G, the job link cost is included in this column.

Avg Actual

If the job issue transaction type has been selected in column B, a manufactured (intermediate) product has been selected in column C and the manufactured product has been produced previously, the average actual cost of all previous manufacturing jobs will be displayed in this column. This value is influenced by the To date that is selected on in cell R2 on the StockCode sheet. All jobs that fall between the first job date on the JSetup sheet and the To date which has been specified on the StockCode sheet are included in this calculation.

By entering a To date on the StockCode sheet, you can therefore determine which average actual costs are included in this column. If no To date is specified on the StockCode sheet, all the jobs that have been created on the JSetup sheet will form part of this calculation.

The above only holds true when the template is in the Single mode. If the template is in Multiple mode, the average cost which is included in this column will be based on the standard usages on the BOM sheet and the actual average costs of the components which have been linked to the product on the BOM sheet. This adjustment to the average actual cost is necessary because it is impossible to calculate an average actual cost for a manufactured product when more than one product is linked to the same job.

FG Code

The manufactured product which has been linked to the appropriate job number will be included in this column.

Note: This column will only contain values if the template is in Single mode which means that a single manufactured product has been linked to each job.

Job Review

The JReview sheet can be used to review individual job costings. All the calculations on this sheet are automated and the only user input that is required is entering or copying the appropriate job number into cell D1.

The manufactured products section in row 3 to 6 includes all the products which have been linked to the selected job on the JSetup sheet. The JReview sheet accommodates a maximum of three products which can be linked to a single job but you can customize the sheet to include more products by inserting the appropriate number of rows below this section and copying the formulas in row 6 into the appropriate number of new rows.

This section includes the stock code, description and unit of measure (UOM) of each manufactured stock item as well as the quantity to make (quantity required on the JSetup sheet), quantity received, job balance, standard value (total receipts at standard unit cost), standard unit cost, actual unit cost and the cost difference percentage. The actual unit cost is calculated by dividing the total actual cost by the quantity that has been received.

Note: The actual unit cost can only be calculated if a single product is linked to a single manufacturing job. If more than one product is linked to a job, the actual unit cost and cost difference cells will contain "n/a".

The components issued section on the JReview sheet will include all components which form part of the bill of material of the manufactured product(s) that have been included in the job as well as any components which do not form part of the bill of material but for which job issue transactions have been included on the JDetails sheet.

The components will be listed in the same sequence as they are included on the StockCode sheet and the stock code, description and unit of measure (UOM) of each of these components will be included in columns A to C. The component quantity required is calculated based on the bills of material and the required quantities which are entered for each manufactured product on the JSetup sheet. The values in this column can be used for requirements planning purposes on a single job level.

The usage section includes the total standard quantities which needed to be issued, the total actual quantities which have been issued by recording job issue transactions on the JDetails sheet, the quantity difference and a value difference which is calculated based on the standard cost per unit. The standard quantities issued are calculated based on the bills of material on the BOM sheet and should equal the required quantities if the job balances for all manufactured products are nil.

The price section includes the component standard costs per unit, the component actual costs per unit which is calculated based on the actual unit costs that have been issued on the JDetails sheet, the unit price difference and a price variance value which is based on the actual quantities issued.

The total value section includes the total standard value, the total actual value and the difference between the standard and actual values per component.

Note: The variances in the usage, price and total sections will contain positive values if the variances are positive meaning that the actual cost is lower than the standard cost and vice versa.

Note: The JReview sheet accommodates a maximum number of 30 components per job but can be extended to include additional components by simply copying the formulas in the last row (row 39) into the appropriate number of additional rows.

The job totals section includes the total standard value of the job, the total actual value of the job, the difference between the standard and actual values, the total usage variance, the total price variance and a control total check.

Note: If the control total check cell contains an error, it means that the total usage and price variances do not add up to the total job variance. The usage & price variances are calculated based on the values in columns H and L respectively while the total job variance is calculated from the other sheets in this template. The error can be resolved by checking all the other sheets in this template for error codes in the Error Codes columns and if the error still persists, you can contact our Support function for assistance.

Requirements Planning

The material requirements planning (MRP) features that have been added to this template enable users to enter production forecast quantities for manufactured products on the ReqPlan sheet in order to calculate the stock component quantities that are required in order to produce the specified quantities of manufactured products.

The components required for MRP purposes can be calculated by simply selecting the stock codes of the appropriate manufactured products in column A on the ReqPlan sheet and entering the quantities of each manufactured product on which the MRP calculation should be based in column E.

Note: The contents in column A to G of the ReqPlan sheet have been included in an Excel table. You can add additional product codes to the sheet by simply selecting the appropriate product code in the first empty cell in column A - the table will be extended automatically to include the new stock code (if necessary). The columns with light blue column headings (columns B, C, D, F and G) contain formulas that are automatically copied for all new stock codes that are added to the Excel table.

Note: We also recommend entering the forecast date in cell G1 before printing the sheet in order to keep a record of the manufactured product quantities that have been used in all quantity forecasts because once you replace the quantities on this sheet with new forecast quantities, there will be no record of the forecast quantities on which the previous forecast had been based.

Note: Before using the requirements planning feature, you should ensure that all your product costings are accurate. If you base the production forecast on inaccurate product costings it may result in the incorrect component quantities being ordered from suppliers.

The component requirements in column I to N are calculated by applying the manufactured product forecast quantities that are specified in column A to G to the appropriate components that have been added to the bills of material of the selected manufactured products on the BOM sheet. This calculation is based on the appropriate component input quantity, yield and unit of measure.

Note: The BOM level that needs to be used in order to determine whether intermediate products need to be included in the component requirement calculation is determined based on the standard issue level that is selected for the applicable manufactured products in column E on the StockCode sheet.

Note: The component requirements calculation is limited to a maximum of 50 components. If your bills of material contain more components than this, you can add additional components by copying the last row in column I to N which contains data (row 56) and paste the formulas into the appropriate number of additional rows.

Error Codes

The following error codes may result from inaccurate user input and will be displayed in the Error Code columns of the appropriate sheet. The heading of the affected input column will also be highlighted in orange:

  • E1 - this error code means that a duplicated stock code has been entered in the appropriate row. The error can be corrected by simply deleting one of the duplicated entries.
  • E2 - this error code means that the standard unit price input in column D on the Stock Code sheet is incorrect. A standard unit price should be entered for all bought-in stock items but is not required for manufactured products. When adding new manufactured stock items to the StockCode sheet, this error code will be displayed until the appropriate components have been added to the BOM sheet. The error can therefore be corrected by adding a standard unit price for a bought-in stock item, adding components to a manufactured stock item or deleting a standard unit price that has been specified for a manufactured product.
  • E3 - this error code means that the product stock code that has been specified is invalid. Stock codes must be created on the StockCode sheet before being used on any of the other sheets and the error can therefore be corrected by simply creating the appropriate stock code on the StockCode sheet. If a stock code has been deleted, this error code will be displayed in all the rows on the other sheets that still refer to the stock code. These entries must be deleted or a valid stock code needs to be selected in the appropriate column.
  • E4 - this error code means that the component stock code that has been specified is invalid. Stock codes must be created on the StockCode sheet before being used on any of the other sheets and the error can therefore be corrected by simply creating the appropriate stock code on the StockCode sheet. If a stock code has been deleted, this error code will be displayed in all the rows on the BOM sheet that still refer to the stock code. These entries must be deleted or a valid stock code needs to be selected in column B.
  • E5 - this error code means that a component has been duplicated in the same product costing. Components should only be included once in any particular product costing and duplications of component codes may result in inaccurate product costings. This error can be corrected by sorting the data on the BOM sheet in an ascending order based on the product code in column A and then by the component code in column B before deleting any duplicated entries that may exist.
  • E6 - The stock code that has been selected or entered is not a manufactured stock item. Only manufactured stock items can be used for job costing purposes. If the affected stock code is supposed to be a manufactured stock item, this error code could mean that the components which form part of the bill of material of the stock item have not been added to the BOM sheet. If you add the appropriate components to the BOM sheet, the product type will automatically change to a manufactured item.
  • E7 - The stock code that has been selected or entered is not a manufactured stock item and the stock receipt transaction type has been selected. Job receipt transactions should only be used for manufactured stock items. Either the transaction type or the stock code is therefore incorrect and should be amended. If the stock item is supposed to be a manufactured product, the appropriate components should be added to the BOM sheet.
  • E8 - The job number does not exist. A job number needs to be created on the JSetup sheet before any transactions can be recorded against a job.
  • E9 - An incorrect transaction type has been entered. The template only makes provision for receipt and issue transactions being entered on the JDetails sheet. Select the correct transaction type from the list box in column B.
  • E10 - The job number that has been specified in the JobLink column on the JDetails sheet does not exist. A job number needs to be created on the JSetup sheet before the job costs can be linked to another job. If an incorrect job link number is specified, the linked job cost will be nil.
  • E11 - A job receipt for a manufactured product has been entered on the JDetails sheet but the job has not been set up for the particular product on the JSetup sheet. The stock codes which have been used on the JDetails sheet and JSetup sheet therefore do not match. This error can be corrected by amending the stock code(s) on either the JDetails or JSetup sheets.

Note: Input errors may result in inaccurate template calculations and it is therefore imperative that all errors are resolved before reviewing the job costings.

job costing template sheet 1
Job Costing Template - Sheet 1
job costing template sheet 2
Job Costing Template - Sheet 2
job costing template sheet 3
Job Costing Template - Sheet 3
job costing template sheet 4
Job Costing Template - Sheet 4
job costing template sheet 5
Job Costing Template - Sheet 5
job costing template sheet 6
Job Costing Template - Sheet 6