IEMSuite
Cost & finance4 min read

Cost analysis: purchasing vs production

Read the Cost analysis screen - purchasing (what you paid suppliers) and production (what it costs to make).

Seeing what things cost

Margins live or die on cost. Inventory → Cost Analysis brings your two big cost stories into one place: what you pay suppliers (purchasing) and what it costs to make your products (production).

Purchasing costs

The Purchasing view shows what you've spent bringing stock in - supplier spend over time, drawn from your receiving records (including freight where you captured it). It answers "what is inventory costing us to buy?"

Production costs

The Production view shows what it costs to manufacture - material, labor, and overhead rolled up from your batches. It answers "what does it cost us to make?" See How production cost is calculated.

Switch between the two

Cost analysis presents purchasing and production as two views of the same screen, so you can move between "buy" and "make" without leaving the page.

Tips

  • Accurate receiving (with freight) makes purchasing costs trustworthy.
  • Honest wastage makes production costs trustworthy.

FAQ

Where does the purchasing data come from?

From your inbound receiving records - supplier deliveries you logged in Inventory → Inbound Log.

Where does production cost come from?

From your production batches - the real material, labor, and overhead of each run.