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Cost reports

Use cost reports to analyze manufacturing costs, track expenses, and optimize production efficiency.

Dayvid Lorbiecke avatar
Written by Dayvid Lorbiecke
Updated over a week ago

Cost reports provide detailed insights into manufacturing costs, including labor, materials, and overhead expenses. This feature allows businesses to track and analyze expenses across different production processes, helping to identify cost-saving opportunities and improve overall production efficiency.

You can analyze costs for sales and manufacturing by checking your Cost of goods sold (COGS) for a specific period or go into more detail with manufacturing costs.

You can use sales insights to analyze the COGS and manufacturing insights to analyze manufacturing costs.

Note: Manufacturing insights are only usable through the Advanced Manufacturing add-on (you need to be on a Standard plan or higher to use this Add-on)

Sales and manufacturing tabs inside the insights screen

Cost of goods sold in Katana

A COGS amount and a Picked date are added to each sales order (SO) when the Delivery status of a SO is changed to Packed or Delivered.

Navigate to the Sell screen > Sales orders tab > Done table to access all delivered SOs. Notice the Cost of goods sold column. It is the total cost for the products sold with the SO and is based on the average cost of related products at the time of marking the SO Delivery status as Delivered. Average cost is the average manufacturing cost for the product In stock, based on the product's product recipe and production operations.

COGS column for a done sales order

You can filter on the Picked date column to see your COGS for a specific period. COGS figures for the last month are often required by accounting.

Detailed manufacturing costs

Navigate to the Make screen > Schedule tab > Done table to find the list of all completed manufacturing orders (MO). The table includes several columns such as Product, Planned/Actual qty, Materials cost, Sub-assemblies cost, and Operations cost for each MO.

Done table for manufacturing orders

Material and subassembly costs are based on the average cost of relevant ingredients (based on the product recipe) at the time the MO completes. Average cost is the average purchase price for a material In stock (or the average manufacturing cost for a subassembly In stock).

Note: Sub-assemblies cost is displayed as a separate column to avoid double accounting for material costs. Subassemblies are produced separately from the finished product (i.e. you have separate MOs for finished products and subassemblies), then MOs for making the subassemblies are also listed in the Done table. If sub-assemblies cost is included in materials cost, the total materials cost for a period could be overstated.

A Done date is assigned to each MO when the production status is changed to Done. Filter on the Done date column to see costs for a certain period.

You can apply filters to any column to analyze data. For example, filter by Product to see cost breakdowns by materials and operations for a specific product.

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