On the stock valuation report, for finished goods what does the column ‘Beer WIP value per container’ represent? Is this not just the sum of the ingredients and other? Our’s is not quite set up yet but we have ingredient and other having values but WIP shows £0.
Thanks
This figure is set manually in your stock valuation settings under “WIP additional value per litre”, which is then multiplied by the container volume to give you the value per container in the stock valuation. The intention is to give you some manual control over the value attributed here.
Okay thank you, so this is similar to the ‘Finished Goods additional value per container’ in the valuation settings, correct? - do these values feed through into Cost Of Good Sold report once the stock has been sold?
Yes, similar, with one being for WIP and the other being for finished goods.
And no, neither of these will feed through to any other reports and are purely intended for manipulation of the stock valuation report.
Ideally, for finished goods, you would have all costs accounted for via batch ingredients, batch utility/other costs and stock items assigned to the products (e.g. bottle caps), but the ‘Finished Goods additional value per container’ allows for additional control for the valuation.
So what would a solution be for reproducibly applying some indrect packaging costs. For example we might incur some product analysis costs that occur only once the beer is packaged and so we wouldn’t want to recognise it in the value of the WIP but we would once the products are in stock.
another example might be say packing tape and pallet wrap - we probably wouldn’t keep them as stock items (unless you’d recommend that) but we might calculate a rate to absorb the cost into FG, it wouldn;t apply to WIP though.
For the indirect packaging costs such as product analysis costs, I’d suggest using batch utility/other costs. When you add the cost, you can select a specific racking to apply the cost to. So this is good for one-offs applied to specific rackings.
For tape/wrap, I have seen users set these up as stock items and set it up on the container type to use an averaged amount per product. It depends really how far/accurate you want to dive into these costs. A simpler option would be to calculate the average amount used per batch (or even per litre on an average batch), then add these as automatic batch costs; which you can read about in the article I linked to. If you did it this way, you wouldn’t have to worry about keeping the stock item in stock etc, it would just be an average cost applied automatically to each batch.