This is what happens in the video
In Business Central, you can view the statistics for a production order to see exactly how much money you have spent on it. Before you trust those numbers, you need to understand how the lot size on the item card affects the standard cost column. If the lot size is set to 0, Business Central defaults it to 1, which inflates the capacity cost because the setup time gets divided by 1 instead of the quantity you actually produce.
The actual cost shown in the statistics is the amount that posts to the WIP (Work in Process) account. It stays there until you report the production order as finished.
To open the statistics, go to Navigate, Order, Statistics on the released production order. There you see the standard cost, the expected cost, and the actual cost side by side, along with the deviations in both percentages and money.
How the lot size on the item card affects production order statistics
Before you look at the statistics, check the lot size field on the item card. Take item number 1210, which is being produced. On the item card, the lot size field is not filled in, which means it is zero.
In Business Central, the lot size defaults to 1 when you enter 0. So during calculation, the system treats the lot size as 1.
The lot size expresses the normal quantity you want to produce an item in. The base statistics, including the standard cost, are calculated based on this lot size. When the lot size is 1, the calculation assumes you produce one unit at a time.
This matters because the standard cost comes from the item card and is built on a lot size of 1. If you actually produce 25 pieces in a single production order, the per-unit numbers in the standard cost column will not match your real situation.
Reading the columns in the production order statistics
On the released production order for the Back Wheel item, postings have been made on materials, time, and output. When you open the statistics, you see several columns.
- Standard cost: This comes from the item card. Here the capacity cost is very high, because the setup time on the routing is divided by 1 due to the lot size of 1.
- Expected cost: This is much lower, because it is calculated on the actual quantity for this specific production order, which is 25 pieces. The setup time is spread across all those units instead of just one.
- Actual cost: This is the real cost you have consumed on the order.
In this example, the order was planned for 25 pieces, but in real life the operations produced 18 for some operations, and 19 and 20 for others. The expected cost reflects the planned 25 pieces, while the actual cost reflects what was really consumed.
The statistics also show the deviations between expected and actual cost, both in percentages and in money, for this specific production order.
Where the actual cost goes in the accounting
In this example, the actual cost is 6820. That amount goes into the WIP (Work in Process) account. It waits there until the production order is reported as finished.
Q&A
What happens if the lot size on the item card is set to 0 in Business Central?
Business Central defaults the lot size to 1 when you enter 0. This means the standard cost calculation treats the production as one unit at a time, which makes the capacity cost very high because the setup time on the routing is divided by 1.
Why is the capacity cost so high in the standard cost column?
The capacity cost is high because the setup time on the routing is divided by the lot size. When the lot size is 1, the full setup time is allocated to a single unit instead of being spread across the quantity you actually produce.
What is the difference between standard cost, expected cost, and actual cost in the production order statistics?
The standard cost comes from the item card and is based on the lot size. The expected cost is calculated on the actual quantity of the specific production order, for example 25 pieces. The actual cost is the real cost you have consumed on the order.
Where does the actual cost of a production order post in Business Central?
The actual cost posts to the WIP (Work in Process) account. It stays there until you report the production order as finished.
How do you open the statistics for a released production order?
Go to Navigate, Order, Statistics on the released production order. There you can see the standard cost, expected cost, actual cost, and the deviations in percentages and money.