Managing Projected Costs vs. Actual Costs

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If you have a handle on your finances, you probably know that you are making money on the products you sell. However, calculating true costs for all of the products you manufacture throughout the year can be a challenge. Microsoft Dynamics® GP includes manufacturing modules that will allow you to collect all of the actual costs during production so that you can calculate the real costs of your production operations.

Keeping a close eye on your general ledger, profit and loss statements, and other financial documents will show you whether you are pulling a profit and, possibly, how wide your profit margins may be throughout the year.  However, digging deeper into the details regarding your operations can give you even more information that you can use to optimize your profits.  A comprehensive enterprise resource planning (ERP) solution, like Microsoft Dynamics GP, can give you those details in any of your core business operations, including manufacturing.  Better yet, you could determine true costs associated with individual products or product lines.

The manufacturing module in Microsoft Dynamics GP offers the ability to track the costs associated with each inventory item and modify those costs as new items are received that may differ in price.  Buying a product from another supplier or at a bulk rate may offer cost savings.  This change in value is important to note when determining the true cost of a product.  You can also pay close attention to labor resources and track labor budgets based on job functions.  Understanding the time that is put into a product by your team can also impact the true cost of a product.  Both material and labor costs can be difficult to track in disparate software or simple spreadsheets and can be inaccurate.  An integrated solution like Microsoft Dynamics GP makes it easy to collect material and labor data and the business intelligence and reporting features makes it easier to analyze that data.

The closer you can get to analyzing the details associated with manufacturing operations, the better you can determine the true costs, and the true profitability, of your products.  Picking and choosing data off of invoices and timesheets is unreliable.  You can get more accurate and meaningful directly from Microsoft Dynamics GP, easier and in less time than from rooting through file folders.  Contact OmniVue for more information about calculating the true costs associated with your operations by using and ERP solution like Microsoft Dynamics GP:


By OmniVue, Georgia Microsoft Dynamics ERP and CRM Partner (

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