Introduction
In ProdSys, rates are essential for calculating the cost of articles, ensuring that all costs associated with materials, labor, and other overheads are accurately factored into the final price of a product or service. This article provides an overview of how to manage rates in ProdSys and how they are used in the calculation of articles.
Purpose of Rates
Rates serve as predefined cost factors that are applied during the production or sale of articles. These include material costs, labor costs (e.g., overtime or specific work types), and additional service costs (e.g., transportation or equipment usage). By setting accurate rates, businesses can ensure that they maintain profitability, properly price their products, and track resource usage effectively.
Accessing the Rates Page
To manage rates in ProdSys, follow these steps:
Login: Begin by logging into your ProdSys account.
Navigate to Rates: Go to Settings > Rates. This page displays all the rates currently defined in the system. Rates in ProdSys
Key Features of the Rates Page
Name: This column lists the name of the rate, such as "50% Overtime," "Production Labor," or "Material AISI 304 Plate."
Amount: Displays the cost or value associated with the rate. For instance, 25 might represent a material cost of 25 currency units per unit.
Code: A unique identifier code used for internal tracking or linking rates to specific articles and processes.
How to Add a New Rate
Click the "+" Button: In the upper-left corner, click the "+" button to add a new rate.
Enter Rate Details:
Name: Give the rate a descriptive name, such as "Machining Cost per Hour" or "Material Cost Steel."
Amount: Input the cost or amount that this rate represents.
Code: Assign a unique code to help identify the rate in calculations and reports.
Editing an Existing Rate
Select the Rate: Locate the rate you want to edit by scrolling or using the search function.
Click the Three Dots: Next to the rate name, click the three dots to open the options menu.
Edit the Details: Update the name, amount, or code as needed, then save the changes.
Connecting Rates to Article Calculations
Rates in ProdSys are directly connected to the calculation of article costs. By assigning rates to specific articles or processes, you can automate the calculation of production costs. For example:
Material Rates: Apply material costs to articles to account for the raw material used in production.
Labor Rates: Assign labor costs, such as "100% Overtime" or "Electrician Hours," to calculate the personnel costs associated with production.
Service Rates: Add rates for external services like transportation or machine usage (e.g., "Forklift Usage per Hour").
Best Practices for Managing Rates
Regularly Review Rates: Ensure that all rates are up-to-date with current market prices, labor wages, and material costs.
Use Consistent Naming: Maintain a consistent naming convention to avoid confusion and ensure that the correct rate is applied to the right articles or processes.
Factor in All Costs: Don’t forget to include less obvious costs like maintenance, equipment depreciation, or energy consumption when creating rates for production.
Conclusion
Rates are an integral part of ensuring accurate and efficient article cost calculations in ProdSys. By properly managing and linking rates to articles, businesses can maintain clear visibility over production costs, optimize pricing strategies, and ensure profitability. Regularly updating and reviewing your rates ensures that your pricing and cost structures stay aligned with the current business environment.