Odoo's standard Bill of Materials tells you what to produce and which components to use. It does not tell you how much that production actually costs. Without labor, overhead, and material costs in one place, pricing decisions rest on guesswork.

• No visibility into the unit cost of each component at the BoM level
• Labor expenses - wages, shift costs, skilled time - are tracked nowhere on the BoM
• Overhead costs - rent, utilities, depreciation, insurance - are invisible to production planners
• Product pricing decisions are made without a true cost base
• Accounting entries for materials, labor and overhead use different accounts with no central reference
• Manufacturers cannot quickly answer: what does it cost to make this product?

Manufacturing Process Costing adds four dedicated tabs to every Bill of Materials. The Total Material Cost tab shows each component's unit price and line total, auto-computed from standard cost. The Labor Cost and Overhead Cost tabs hold editable cost lines with planned hours and cost per hour - totals calculate automatically. The Overall Total Costs tab combines all three into a single cost breakdown and links your Material, Labor and Overhead accounts for clean accounting.

To connect BoM costing to your financial records, create three dedicated expense accounts in your Chart of Accounts - one each for Material, Labor and Overhead costs. Assign them on the BoM's Overall Total Costs tab. These accounts then appear across Odoo's accounting reports - the General Ledger, Trial Balance, and Journal Entries - whenever manufacturing-related journal entries are posted against them.

  Food & Beverage Manufacturing

Track the per-gram cost of every ingredient alongside labour and utilities. Know the true cost of each SKU before setting shelf prices or planning production runs.

  Discrete & Process Manufacturing

Add machine-hour overhead and assembly labor to complex multi-level BoMs. Get a single Overall Total Cost figure that includes every expense category, not just raw materials.

  Product Pricing & Margin Analysis

Compare Overall Total Cost against your sale price directly. Use the cost breakdown to identify which expense category is squeezing margin and where to focus cost-reduction efforts.

  Cost Accounting & Audit

Map material, labor and overhead accounts directly on the BoM. Finance teams get a clear link between production plans and chart-of-account entries for cleaner period-end reporting.

  Budgeting & Cost Planning

Use planned-hours fields on labor and overhead lines to model scenarios - what if labor rates rise, or a new overhead item is added? The BoM cost updates immediately for instant what-if analysis.

  Multi-Warehouse & Multi-Company

Each BoM carries its own cost structure. Operations in different facilities with different overhead rates maintain independent cost profiles on the same product.

Accurate Product Costing

Material, labor and overhead are captured in one record. The Overall Total Cost gives a complete production cost figure that can be directly compared against sale price to calculate true margin.

Informed Pricing Decisions

Pricing based on a complete cost breakdown - not guesswork or spreadsheets maintained outside Odoo. When raw material or labor costs change, the BoM cost updates immediately.

Tighter Accounting Integration

Account fields on the BoM provide a direct link between manufacturing plans and the chart of accounts. Finance teams no longer need to cross-reference spreadsheets to allocate production costs.

Zero Migration, Instant Value

Install the module and the costing tabs appear immediately on every existing BoM. No data migration, no reconfiguration of existing records, no downtime. Start adding cost data right away.

1 - Install and Open a Bill of Materials

Install Manufacturing Process Costing from the Apps menu. Navigate to Manufacturing -> Products -> Bills of Materials and open any existing BoM. Four new tabs - Total Material Cost, Labor Cost, Overhead Cost and Overall Total Costs - are immediately visible.

2 - Review Material Costs (automatic)

Click Total Material Cost. The Product Cost and Line Material Cost columns are computed automatically from each component's standard price. No input required - update product costs in the product catalog and the BoM reflects the change immediately.

3 - Add Labor Cost Lines

Click Labor Cost -> Add a line. Enter the labor category name, planned hours and cost per hour. Repeat for each labor category involved in producing this BoM. Total Labor Cost updates after each entry.

4 - Add Overhead Cost Lines

Click Overhead Cost -> Add a line. Enter each overhead item (factory rent, electricity, machine depreciation, etc.) with its hours and rate. Total Overhead Cost updates automatically.

5 - Map Accounting Accounts (optional)

Click Overall Total Costs. In the Accounts section, select the relevant Material Account, Labor Account and Overhead Account from your chart of accounts. Save the BoM.