Comparing estimated costs to actual costs is important to accurate cost accounting and understanding profitability. You need a snapshot comparison of materials and labor, which includes direct labor, overhead, and outsourced labor.
On the Invoice Cost Comparison report, you can see all of this information.
- To navigate there go to Sales> Invoices> Cost Comparison.
- To view the cost details of a specific invoice, click into that invoice number then click Details/Serials in the left side menu.
- Here you get a complete breakdown of material estimated versus actual cost, what portion of material used was due to incidental scrap, estimated versus actual labor, outsourcing, and overhead costs, in addition to complete material traceability back to source PO receipts for material sold.