Production costing for Kenyan manufacturers
Record what goes into each product, run production orders, and let MannaBooks cost your finished goods from the raw materials used. Your stock and cost of sales are right every month.
Made for
- Food and beverage processors
- Animal feed millers
- Furniture makers
- Block and pavers makers
- Soap, detergent and cosmetics
- Printing and packaging
- Garment and textile makers
What you'll use
- Recipes (bills of materials)
- Production orders that cost the finished goods
- Raw materials and finished stock
- Cost of sales that is right every month
- Stock takes
The problems
What gets in the way, and how MannaBooks fixes it
Not knowing what a product costs
A recipe lists the raw materials for one unit. MannaBooks prices it at average cost so you see the cost before you set the price.
Raw materials that don't reconcile
Production orders take raw materials out and put finished goods in, so stock on paper matches the store.
Month-end guesswork
Cost of sales comes from the finished goods actually sold, at what they cost to make.
A day with MannaBooks
How the work flows
- 1
Buy raw materials
LPOs, goods received and supplier bills; materials go into stock at their cost.
- 2
Plan production
Raise a production order for the quantity you want to make.
- 3
Produce
Complete the order; materials come out and finished goods go in at their cost.
- 4
Sell
Invoices and cash sales take finished goods out at their production cost.
Worked example
An animal feed miller
A 70 kg bag of dairy meal uses 40 kg of maize germ (KES 30 a kg), 20 kg of wheat bran (KES 25), 8 kg of cotton seed cake (KES 45) and 2 kg of minerals (KES 120). It sells at KES 2,900 a bag.
- 1.The recipe costs one bag at KES 2,300.
- 2.A production order for 100 bags takes out 4,000 kg of maize germ, 2,000 kg of bran, 800 kg of seed cake and 200 kg of minerals.
- 3.100 bags of dairy meal go into finished stock at KES 2,300 each.
- 4.Each bag sold is costed at KES 2,300, so the profit on every invoice is real.
| Maize germ (40 × 30) | KES 1,200.00 |
| Wheat bran (20 × 25) | KES 500.00 |
| Cotton seed cake (8 × 45) | KES 360.00 |
| Minerals (2 × 120) | KES 240.00 |
| Cost per bag | KES 2,300.00 |
| Profit per bag at KES 2,900 | KES 600.00 |
| 100 bags: raw materials used | KES 230,000.00 |
VAT follows each product's own rate.
An illustrative example with made-up figures, not a customer.
Use cases
The jobs MannaBooks does for you
Cost recipes and production
Know what each dish, drink or product costs to make, and cost every production run.
Keep stock you can trust
Stock in every warehouse at average cost, with transfers, stock takes and low-stock warnings.
Control spending
Approval chains, budgets against actual, cost centres and a fixed asset register.
Stay right with KRA
VAT on every document, withholding tax on payments, and the VAT summary for your return.
Run Kenyan payroll
PAYE, SHIF, NSSF and the Housing Levy worked out, with payslips on staff phones.
Questions
What if a raw material's price changes?
Stock is kept at average cost, so new deliveries move the cost, and the recipe shows the new cost of making a unit straight away.
Can I make some products to order?
Yes. A product made to order takes out its materials when it is sold, without a production order.
More questions? Read the FAQ or talk to us.
Other industries
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