Manufacturing
What a finished unit actually cost to make
Raw materials in, finished goods out, and a cost that includes the labour rather than booking it away as overhead. This was the system's original home, so the depth here is real.
What usually goes wrong
Sound familiar? Here is what Rocket ERP puts in their place.
Labour is a monthly number, not a product cost
Booking wages to overhead and spreading them makes every product look equally profitable. The one that takes three times the labour is being subsidised by the others, and nobody can see it.
Over-issue destroys the cost quietly
Material issued to an order beyond what it plans to consume makes the order's cost meaningless, and the error is invisible because the stock figure still balances.
Work in progress that nobody clears
Material issued and not consumed sits as WIP for months. It is real value in the wrong place on the balance sheet.
Yield is assumed, not measured
A formula that makes 95 units from inputs for 100 costs about 5% more per unit than the recipe says. Assuming 100% overstates the margin on everything it touches.
What matters for you
One platform, configured for the way your business works. Nothing extra to buy, and no separate edition to maintain.
- Bills of materials with a base quantity and a yield, so the cost per unit reflects what the process actually produces.
- Routings and work centres, which is what turns labour from an overhead figure into a cost attached to the product.
- Production plans released into work orders, with progress coming back so the plan reflects the floor.
- Issuance capped at what the order still plans to consume, so over-issue is refused rather than absorbed.
- Leftover work-in-progress returned to stock automatically when the order completes.
- Quality checks per order, and material and labour variances reported against the plan.
- Physical assets treated as assets in the ledger rather than written off as a purchase expense.
What you gain
Here is what changes when you run your business on Rocket ERP:
Price with confidence. Labour is built into each product's cost, so you can see which products truly earn their margin.
Unit costs that match the shop floor, calculated on the yield your process actually delivers.
Order costs you can rely on. Over-issue is refused, and leftover work-in-progress returns to stock when the order completes.
Spot material and labour variances against the plan on every work order, alongside its quality checks.
Tell us how you work
Book half an hour and we will walk you through Rocket ERP on your own process: your documents, your branches, your way of working.