Overhead Deep DiveAdvanced Session

Presented by:Dylan PriceLead Implementation Consultant

November 10, 2015

1. Overview2. Deployment Methods3. Process Flow4. Prerequisites5. Demo6. Final Note – Q & A

AGENDA

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Purpose

Overview

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Overview

Overview• See true value of inventory and cost of production

• You can add Overhead Items (Labor, Utilities, Depreciation/Amortization, etc.) at any step in the production process

• As much detail in OBeer for overhead as you capture in the real world

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Overview

What is OverheadAnything that is a cost of production that is not consumed as inventory• Labor• Utilities• Consumables• Taxes• Depreciation Expenses• Etc.All the costs not already consumed in production

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Overview

Labor OverheadAll the labor that is related to the production process

• Brewhouse labor• Cellar labor• Packaging labor• Whse• Etc.

You can account for as much detail of labor as you can track via payroll system

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Deploy

Deployment Methods

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Deploy

Deployment Methods• Simple First• Have a single item that just accrues at the

Finished Good level• Or at the Bright Beer stage (when the TTB sees

the beer)• Start from what you know and build from there

• Complex Later• Break out overhead costs onto multiple stages

of the production process• Include utilities and other miscellaneous costs

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Deploy

Why Not Hours?• Your staff would have to key in their hours on

each production order

• Multitasking doesn’t make this feasible• Ex: start a batch before another batch is

finished

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Process

Process Flow

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ProcessPurpose

Step 1 – Item Master

• Set overhead items up as standard cost, non-inventory items

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ProcessPurpose

Step 2 – GL Determination

• Set overhead items up as standard cost, non-inventory items

• Add them to the BoMs they are associated with• standard cost for the

overhead items based on the # of BBLs

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ProcessPurpose

Step 3 – Bill of Materials

• Add them to the BoMs they are associated with• standard cost for the

overhead items based on the # of BBLs

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ProcessPurpose

Step 4 – Production Order

• Overhead items will be calculated based on the BoM

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ProcessPurpose

Step 5 – Journal Entry Posting

• Processing the production order creates a JE

• Credits the overhead clearing account

• Debits the inventory asset account

• This applies the overhead cost to inventory

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Prereq

Prerequisites

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PrereqPurpose

Overhead Item

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PrereqPurpose

Bill of Material

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Demo

Demo

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Q&A

Questions?

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http://

forums.orchestratedbeer.com

Thank You!