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    Autonomous Management · Cost and operations

    Autonomous Production and Cost Accounting

    Factorbooks runs production from recipe to sale in one flow. When production is approved, the standard cost is calculated and material consumption and production receipt slips are created on their own. At period end, actual costs are allocated to finished goods and compared with the standard cost.

    Works in every package together with the related module. In NUCLEO, accounting records go to your accountant by data transfer.

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    How it differs from other ERPs

    The same work, done two different ways.

    In other ERPs

    • Standard cost is often worked out in a separate spreadsheet.
    • Material consumption, waste and production receipt slips are entered by hand.
    • Cost of goods sold and its accounting entry are prepared separately.
    • Labour and production overheads are allocated by hand at period end.
    • The gap between standard and actual cost takes a separate exercise to find.

    In Factorbooks

    • When production is approved, standard cost is calculated from moving average costs on its own.
    • Consumption, waste and production receipt slips come from the recipe and the quantity produced.
    • On a finished goods sale, cost of goods sold and the profit or loss entry are created automatically.
    • Actual costs are allocated in proportion to material cost or by your own allocation keys.
    • Standard and actual cost are compared side by side.

    What happens when you approve a production order?

    You decide to produce an item that already has a recipe.

    1. Standard cost is calculated

      Estimated direct labour and production overheads are added to the moving average purchase cost of the recipe materials.

    2. Slips are created

      Material consumption, waste and production receipt slips are created from the quantity actually produced.

    3. Stock and accounting post

      The related stock movements and journal entries are created together.

    4. Profit shows on the sale

      When the item is sold, cost of goods sold comes from the standard cost and the profit or loss entry is made.

    5. Period end comparison

      Actual labour and overheads are allocated. The gap between standard and actual cost becomes visible.

    Which work runs autonomously?

    You enter the record; Factorbooks does the work below for you.

    Recipe and standard cost

    Production recipe
    Raw materials, semi-finished goods and other materials are defined with their quantities.
    Cost definition
    Estimated unit prices of materials, direct labour and production overheads are set as a rate or an amount.
    Standard cost on its own
    When production is approved, standard cost is calculated from moving average material costs and estimated overheads.
    Updating from earlier runs
    When the same production is repeated, the actual cost of the earlier run can be used for the new standard cost.

    Production records

    Material consumption and waste
    Consumption and waste slips are created from the recipe and the quantity produced.
    Production receipt
    The receipt slip for the finished item is created. The stock movement and journal entry post together.
    Indirect materials and overheads
    Auxiliary and operating materials count as indirect materials. The overheads from their use are calculated on their own.

    Sales and period end

    Cost of goods sold
    Finished goods sales use the standard cost. Profit or loss comes from the sales revenue and cost entries.
    Allocating actual costs
    Actual direct labour and production overheads are allocated in proportion to material cost or by keys you set.
    Standard versus actual
    Cost differences are analysed, which supports production efficiency and cost control.

    What it gives your business

    • Complete costingMaterials, direct labour and production overheads are calculated together.
    • Production accounting on its ownConsumption, waste, receipt and cost records are not keyed in by hand.
    • Visible cost variancesComparing standard and actual cost shows where things can improve.
    • More efficient productionMaterial use, waste and production costs are tracked.
    • Strong cost controlCosts are passed to finished goods using the allocation keys you set.
    • Up-to-date standard costsActual costs from earlier runs feed into new estimates.
    • Consistent stock and sales costProduction receipts and cost of sales are managed in the same flow.
    • Sounder pricingProduct cost is visible, so sales prices and product profit can be judged better.

    Calculate your annual benefit

    Enter your annual revenue. The calculation has four lines, each a share of revenue. You can change the rates to fit your own data.

    • Production cost controlAnnual revenue × rate500,000 TL
    • Labour savingAnnual revenue × rate150,000 TL
    • Waste and resource useAnnual revenue × rate200,000 TL
    • Profitability improvementAnnual revenue × rate150,000 TL
    Estimated annual benefit
    1,000,000 TL
    Monthly average
    83,333 TL

    This is a hypothetical calculation, not a result measured at Factorbooks customers. The rates are starting assumptions. Production cost control and profitability improvement should not count the same gain twice. The result should be checked against the company’s production costs, labour costs, waste rates and current manual workload.

    The Factorbooks approach

    In Factorbooks, production cost accounting is more than calculating what production costs. Recipe, material consumption, production receipts, standard cost, period-end allocation, cost of sales and accounting entries run on their own in one connected flow.

    Modules where this runs

    The autonomous process described here runs inside the catalog modules below.

    Production Management

    Production planning, bills of materials, work orders, costing and production performance.

    7 features

    Frequently asked questions

    What is the standard cost based on?

    On the moving average purchase cost of the recipe materials. Estimated direct labour and production overheads are added as a rate or an amount.

    How can we allocate actual costs?

    In proportion to material costs or by allocation keys you set. Allocation to finished goods is done at period end.

    Where do the calculator rates come from?

    From a sample scenario prepared by our team. At 100 million TRY revenue the total rate is 1%, or 1 million TRY a year. Real figures depend on your production data.

    Other autonomous modules

    All autonomous modules

    See it with your own data

    We will set the scope and the package together, based on your transaction volume.

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