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How can I track production Costs?
Elisa Soares Rosa avatar
Written by Elisa Soares Rosa
Updated over a week ago

In Autodesk Fusion Operations it is possible to obtain information on the production cost of a specific product or production order, based on the materials used and time spent during production. This analysis enables you to better understand the discrepancies in each project, facilitating adjustments to resources or selling prices.

A detailed explanation of how to set up the different production costs as well as their impact during the production is given throughout the present article. It also details how to check and analyze these costs using the reports features.

Generate the Costs

There are two entities responsible for generating production costs in Fusion Operations: Consumptions, which include raw materials and subassemblies, and labor costs, including both human and machine labor.

1. Materials Costs

Raw Materials

The calculation of raw material costs will be determined by the average of all receiving inventory movements costs at the time of consumption. The cost of each movement will be based on the unit cost identified on the purchase order, on each receiving.

For example:

There are two receiving inventory movements for product "1250x500x2 - G201":

  • 5 units with total cost 10 (avg. cost of 2)

  • 5 units with total cost 20 (avg. cost of 4)

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 "1250x500x2 - G201" will be 3, since [(5*2) + (5*4)]/10 = 3

Note 1: If 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).

Note 2: If the inventory movement does not have a purchase order associated with it, its default cost will be zero. If you intend to receive materials with a cost (but do not want to track the purchase order to which it is associated) you need to:

  • import the inventory movements using the correspondent importer, or

  • manually change the cost of the Inventory Movement in the backoffice.


The calculation of sub-assemblies costs will be determined by averaging all production inventory movements costs at the time of consumption.

The costs of the sub-assemblies will be calculated based on the sum of all raw materials costs (already detailed above) and the labor costs of all operations performed throughout production.

Important note: The cost of the first inventory movement will take into account the total cost of all units completed in the previous operations. As production continues and more units enter inventory, the cost of the initial inventory movements will be updated so that the cost of the initial operations is equally distributed among the remaining ones. An example of this topic is provided in the "Analyze Costs" chapter.

Beware that, by default, your account does not have the setting to calculate production costs enabled. Please reach out to support / CSM so that we can activate it for you.

2. Labor Costs

The calculation of labor costs will be determined by the time spent performing an operation, considering the cost/hour of that specific resource (worker or machine).

  • Workers Costs

    It's possible to set a standard cost for all workers. For this, select the workers page and define the value that will be considered for all workers:

    It is also possible to define a cost per individual worker, if this is fulfilled the standard cost will be overruled.

  • Machine Costs

    It's possible to set a standard cost for all machines. For this, select the machines page and define the value that will be considered for all machines:

    It is also possible to define a cost per individual machine, if this is fulfilled the standard cost will be overruled.

    Beware that the time spent in production considers parallel usages of the same resource. For example, if the same machine or worker is being used to produce goods in parallel, their hourly costs will be proportionally considered (taking into account the time spent). An example of this behavior will be detailed below.

Analyze the Costs

The best approach to analyze production costs is by generating a cost report. The cost report will display the cost of each production record performed (considering the filters applied). If you want to know more about how to generate a cost report, please check this article.

The cost of each production record corresponds to the sum of the materials consumed and labor cost (which considers time spent and worker/machine cost per hour). You can check the individual cost of each production inside the production record itself – See image below:

Example 1:

For production order "PO1", 10 units of product "1A.RXT-11" were ordered.

Product "1A.RXT-11" needs to go through operations "Set up"; "Production" and "Packaging".

The cost regarding the production of 10 units of both "Set up" and "Production" operations (materials cost + labor cost) was 10 each.

The cost of producing one unit of operation "Packaging" (material cost + labor cost) was 1.

When the 1st unit of product "1A.RXT-11 " enters inventory (due to being the last operation) its cost will be 10 + 10 + 1 = 21.

When the 2nd unit enters inventory (now with a cost of 2.5), the previous inventory movement will be updated and each unit will have an inventory movement cost of: (10+10+(1+2.5))/2 = 11.75.

Example 2:

Let's assume now that besides "PO1" there is also "PO2" running at the same time. Note that the records have a 10 min (0,16667 hours) intersection and that the resources identified below are performing these two records only.

Assuming the hourly cost for machines is 20 and workers cost is 10, the costs are calculated as follows:

PO2: 14.16667

  • Machine: 0.5*20 = 10

  • Worker: 0.333*10 + [0.16667*10]/2 = 4.16667

PO1: 4.16667

  • Machine: 0.16667*20 = 3.3333

  • Worker: [0.16667*10]/2 = 0.18333

When analyzing subassemblies Cost Report:

When you're analyzing the cost reports for multiple BoM levels beware to only analyze the total cost of the last level of the BoM, instead of summing all costs displayed. Otherwise, you'll be summing the costs of the remaining levels multiple times.

For example, Product A consumes product B, and both are produced under the same production order. When you apply the production order filter on the cost report, you will obtain all costs related to the production of Product A (which corresponds to the sum of labor costs and materials consumed) and Product B.

However, since Product B is a material consumed by Product A, summing all cost rows for that production order will result in the production costs for Product B being counted twice.

Best Practices:

  • Make sure to always ship and receive with costs.

  • Make sure not to consume quantities that will lead to negative inventory levels.

  • After doing inventory movements adjustments using inventory count, please revise the inventory movements costs for product that had their stock increased.

  • When analyzing subassemblies make sure to only check the specific level of the BoM, by filtering the products, or consider the option of creating a PO per product.

If after reading this article you still have some doubts, feel free to reach out to us through our Live-chat feature, or directly to your account manager.

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