I’m going back over some beers that we’ve packaged to check that the costs are all being allocated properly and that there’s nothing missing.
In the cost flowchart for this beer it looks like the packaging has been done and then then tank has been “emptied” with the wastage logged by Breww. From the way the flowchart is laid out, it looks as though the cost of the wastage is not applied to the cost of the packaged beer. Am I reading that right?
I would like the cost of the packaging losses to included in the cost of the packaged beer so we can monitor production costs across gyles, so I want to make sure we’re doing this right.
Thanks for your question, Bob. Whenever an action splits a batch, it will create a separate branch in the flow. For instance, if you split the batch into multiple tanks out of the fermentation vessel, each tank will form a distinct branch. This principle also applies to your scenario where an amount was left in tank and emptied with no further action; this is recorded as a separate branch to the rest of the batch.
If no successful action occurs in a branch, e.g. further ingredients added or rackings completed, that branch will have a cost of £0 when emptied, as the cost will be returned to the main flow, and the associated costs will be accounted for in the end products racked. I’ve provided an example below to illustrate a similar flow to yours, with wastage recorded as a separate action.
Batch Flow Example:
- Initial batch creation cost: £589.52
- Transfer to fermentation vessel (FV) with additional cost: £174. These costs combine into the FV branch of the flow.
- Wastage action takes place after the transfer. As the wastage is the end of the flow with no subsequent successful actions, no cost flows down this branch. Instead, this is applied to the main batch flow and is reflected in the cost of the end products.
You can account for the wastage when completing a transfer rather than emptying the vessel afterwards. This way, you will not see a separate branch.