Production

The Production agent is the manufacturing core of Numen Books. It defines what a product is made of (BOM), plans and records the work that makes it (work orders), and rolls up material, labor, and overhead into an accurate product cost with ABC.

What you can do

• Build and version a BOM — the bill-of-materials tree for each product.
• Plan and record work orders and batches.
• Keep a production log of everything you made.
• Track the inventory ledger for materials and finished goods.
• Compute material requirements from BOM and open work orders.
• Run ABC cost calculation — rolling material, labor, and overhead up to product cost.
• Manage outsourcing for steps you subcontract.

How to cost a production run

1. 1Define the product's BOM so Numen knows the materials and quantities each unit needs.
2. 2Issue a work order for a batch. Numen calculates material requirements and draws stock from the material ledger at moving-average cost.
3. 3Record the actual output and any labor and outsourcing against the work order.
4. 4Run ABC cost calculation to allocate overhead and roll everything up into a unit product cost.

How ABC costing works here

Rather than spreading overhead by a single blunt rate, activity-based costing (ABC) assigns it to products by the activities they actually consume. Numen combines direct material (from the ledger), direct labor (from HR allocation), and activity-driven overhead into a product cost you can defend line by line.

Next steps