Autodesk Fusion Operations accurately tracks material consumption costs and shipping using the average cost of each product. This average cost is automatically calculated based on either the average cost of received purchases or the average production cost of manufactured items. By using these average values, Fusion Operations ensures that material consumption is valued consistently and reflects the most up-to-date cost information.
The following examples demonstrate how Fusion Operations calculates consumption and shipping costs in different scenarios.
Consumption cost
The calculation of raw material/sub product costs will be determined by the average of all receiving/production inventory movements costs at the time of consumption.
Example 1: Raw material without LOT
There are two receiving inventory movements for product "Apple":
10 units with total cost 10 = avg. cost of 1 per unit
10 units with total cost 20 = avg. cost of 2 per unit
The next consumption cost will correspond to the average value of the product when the consumption takes place. Therefore, the unit value associated with the next consumption of "Apple" will be 1.5, since ((10*1) + (10*2)) ÷ 20 = 1.5
Example 2: Raw material with LOT
When you are tracking lots, the consumption value for a specific lot will be the average of only those receiving costs (associated with that particular lot).
There are 4 receiving inventory movements for product "Apple":
LOT A, 10 units with total cost 10 = avg. cost of 1 per unit
LOT A, 10 units with total cost 20 = avg. cost of 2 per unit
LOT B, 10 units with total cost 15 = avg. cost of 1.5 per unit
LOT B, 10 units with total cost 25 = avg. cost of 2.5 per unit
The consumption cost of a product is based on the average receiving cost of the specific lot being consumed. In this example, the next consumption of each LOT for the product Apple uses the average cost of all receipts for that lot:
Average cost lot A= ((10 × 1) + (10 × 2)) ÷ 20 = 1.5
Average cost lot B= ((10 × 1.5) + (10 × 2.5)) ÷ 20 = 2.0
Example 3: Consumption of sub-product With LOT
There are 4 "Production" inventory movements for product "Product A":
LOT A, 2 units with production cost of 151.5 per unit
LOT A, 1 units with production cost of 101.5 per unit
LOT B, 1 units with production cost of 102 per unit
The consumption cost of a manufactured product is based on the average production cost of the specific lot being produced. In this example, the production cost of Product A from Lot A is calculated using the average production cost of all production orders for that lot:
Average production cost = (151.5 + 101.5 + 151.5) ÷ 3 = 134.83
Shipping Cost
Shipping costs are calculated using the same approach as consumption costs explained above. The shipping cost of a product is based on the average cost of the specific lot being produced/received. Depending on the product, this average cost is determined from either the average receiving cost (for purchased items) or the average production cost (for manufactured items), ensuring that shipped products are valued accurately and consistently.
Example 4: Shipping of sub-product With LOT
There are 4 "Production" inventory movements for product "Product A":
LOT A, 2 units with production cost of 151.5 per unit
LOT A, 1 units with production cost of 101.5 per unit
LOT B, 1 units with production cost of 102 per unit
The shipping cost of a manufactured product is based on the average production cost of the specific lot being produced. In this example, the production cost of Product A from Lot A is calculated using the average production cost of all production orders for that lot:
Average production cost = (151.5 + 101.5 + 151.5) ÷ 3 = 134.83
FAQ
1. Can the same product have different consumption or shipping costs based on the warehouse or warehouse location?
No. Average costs are not calculated separately by warehouse or warehouse location.
If the same product is received into different warehouses or locations at different costs, Fusion Operations uses the applicable average cost across the relevant inventory movements, regardless of where the inventory is stored.
Products without lot tracking: The cost is based on the average of the relevant receiving or production costs for the product, regardless of warehouse or location.
Products with lot tracking: The cost is based on the average of the relevant receiving or production costs for the specific lot, regardless of which warehouse or location contains that lot.
For example, if the same product is received into Warehouse A at a unit cost of 1 and Warehouse B at a unit cost of 2, the warehouse itself does not determine the cost used when the product is consumed or shipped. The applicable average cost calculation described above is used instead.
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