Cost per order
Margin from the floor's own counts
Material by lot, subcontracting by challan, labour by operation count. Closed when the order ships.
The situation
The selling price is known. The real cost is known at year end.
Material cost is estimated from the BOM. Labour is a plant-wide figure divided by output. Job work is whatever the vendor billed. The margin on a specific order is a guess until the books close, and by then the next order has been quoted on the same guess.
- Piece-rate wages are reconciled from bundle cards days later, with disputes.
- A style that ate more fabric than planned is found at month end.
- Quotes are based on last year's cost sheet.
- Nobody knows which orders make money and which do not.
On FleekERP
Every cost lands on the order as the floor records it
Material consumed by lot at its purchase cost. Labour from operation counts and operator rates. Subcontracting from challans at the vendor rate. Downtime and overtime as expenses. Against the invoice created from the dispatch pick, that is the margin, closed when the order ships.
- 1Material at the lot's costConsumption reads the lots actually issued. A later price change does not move an earlier order.
- 2Labour from countsOperation counts and time at the station, times the rate. King Garments sees labour cost per style this way.
- 3Invoice from the pickDispatch creates the invoice. It syncs to Tally or Zoho. The order closes with its margin.
Capabilities that do the work
Which parts of the platform run this
“I always knew my fabric cost. I never really knew my labour cost per order until FleekERP. Now I see operator output by the hour and the true manpower cost on every style.”
Questions about cost per order
Does it do piece-rate wages?
Operator output per operation is recorded with a name on it. A piece rate per operation gives the wage. King Garments ended wage disputes this way, because the count is logged by the operator at the time.
Can we compare quoted cost to actual?
Yes. The estimate from the BOM and routing sits next to the actual on the order. The difference by material, labour and job work is on the same screen.
Where does the invoice go?
To Tally or Zoho, with the sales order reference. Your accounts stay in the accounts package.
Next step
See cost per order on your floor
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