> ## Documentation Index
> Fetch the complete documentation index at: https://help.macleather.co.uk/llms.txt
> Use this file to discover all available pages before exploring further.

# Production Landed Costs

> Understanding cost calculations for production orders in Mac Leather Dashboard

# Production Landed Costs

The Landed Cost section on a production order shows the complete cost breakdown for manufacturing the order, including materials, all labor stages, and additional costs.

***

## Where to Find It

**Location:** Production Order Detail → **Landed Cost** card (below the tabs)

***

## Sample vs Production Landed Cost

| Aspect                    | Sample                | Production                                     |
| ------------------------- | --------------------- | ---------------------------------------------- |
| **Location**              | Sample Detail page    | Production Order Detail page                   |
| **Labor rates**           | 2 (stitcher, fuser)   | 5 (cutter, fuser, stitcher, finisher, packing) |
| **Quantity**              | Small (1-5 typically) | Large (50-5000+)                               |
| **Materials calculation** | Per sample            | Per unit × total quantity                      |
| **Purpose**               | Estimate costs        | Track actual production costs                  |

***

## Cost Breakdown

### Line-by-Line Explanation

| Line           | What It Shows         | Calculation                                 |
| -------------- | --------------------- | ------------------------------------------- |
| **Materials**  | Total material cost   | (Leather + Accessories + Lining) × Quantity |
| **Cutting**    | Total cutting labor   | cutter\_rate × Quantity                     |
| **Fusing**     | Total fusing labor    | fuser\_rate × Quantity                      |
| **Stitching**  | Total stitching labor | stitcher\_rate × Quantity                   |
| **Finishing**  | Total finishing labor | finisher\_rate × Quantity                   |
| **Packing**    | Total packing labor   | packing\_rate × Quantity                    |
| **Additional** | Other costs           | Manual entry                                |
| **Total Cost** | Everything combined   | Materials + All Labor + Additional          |
| **Per Unit**   | Cost per piece        | Total ÷ Quantity                            |

***

## Materials Cost

Materials cost is calculated from the linked sample (if created from sample) or entered manually:

```
Materials Cost = (Leather + Accessories + Lining) × Total Quantity
```

**Example:**

| Material            | Unit Cost | Quantity | Total           |
| ------------------- | --------- | -------- | --------------- |
| Leather             | PKR 500   | 200      | PKR 100,000     |
| Accessories         | PKR 150   | 200      | PKR 30,000      |
| Lining              | PKR 80    | 200      | PKR 16,000      |
| **Materials Total** |           |          | **PKR 146,000** |

***

## Labor Costs (All 5 Stages)

Each labor cost = Rate × Total Quantity

| Stage           | Rate Field     | Example Rate | Quantity | Total          |
| --------------- | -------------- | ------------ | -------- | -------------- |
| Cutting         | cutter\_rate   | PKR 50       | 200      | PKR 10,000     |
| Fusing          | fuser\_rate    | PKR 30       | 200      | PKR 6,000      |
| Stitching       | stitcher\_rate | PKR 150      | 200      | PKR 30,000     |
| Finishing       | finisher\_rate | PKR 80       | 200      | PKR 16,000     |
| Packing         | packing\_rate  | PKR 40       | 200      | PKR 8,000      |
| **Labor Total** |                |              |          | **PKR 70,000** |

<Info>
  Labor costs are calculated from the rates set on the production order, not actual completed work. The landed cost shows the expected total cost if all units are completed.
</Info>

***

## Additional Costs

You can add other costs manually:

| Example             | Description                |
| ------------------- | -------------------------- |
| Packaging materials | Boxes, tissue, tags        |
| Special treatments  | Waterproofing, embossing   |
| Quality testing     | Lab testing fees           |
| Rush charges        | Overtime or expedited work |

**To add additional costs:** Click **Add Cost** in the Landed Cost card → Enter description and amount.

***

## Currency Display

Costs are shown in two currencies:

| Currency | Description               |
| -------- | ------------------------- |
| **PKR**  | Pakistani Rupee (primary) |
| **GBP**  | British Pound (converted) |

The exchange rate is displayed at the top of the Landed Cost card and updates automatically.

***

## Complete Example

**Production Order:** PRD-2026-015
**Quantity:** 200 units

| Cost Type               | PKR         | GBP         |
| ----------------------- | ----------- | ----------- |
| Materials (Leather)     | 100,000     | £285.71     |
| Materials (Accessories) | 30,000      | £85.71      |
| Materials (Lining)      | 16,000      | £45.71      |
| **Materials Subtotal**  | **146,000** | **£417.14** |
| Cutting Labor           | 10,000      | £28.57      |
| Fusing Labor            | 6,000       | £17.14      |
| Stitching Labor         | 30,000      | £85.71      |
| Finishing Labor         | 16,000      | £45.71      |
| Packing Labor           | 8,000       | £22.86      |
| **Labor Subtotal**      | **70,000**  | **£200.00** |
| Additional (Packaging)  | 4,000       | £11.43      |
| **Grand Total**         | **220,000** | **£628.57** |
| **Per Unit Cost**       | **1,100**   | **£3.14**   |

***

## Margin/Profitability Section

If selling price is entered, the system calculates:

| Field         | Calculation                    |
| ------------- | ------------------------------ |
| Selling Price | Manual entry (per unit)        |
| Cost Per Unit | Total Cost ÷ Quantity          |
| Margin        | Selling Price - Cost Per Unit  |
| Margin %      | (Margin ÷ Selling Price) × 100 |

**Example:**

* Selling price: PKR 1,800 per unit
* Cost per unit: PKR 1,100
* Margin: PKR 700 (38.9%)

***

## Troubleshooting

<AccordionGroup>
  <Accordion title="Materials cost showing as 0">
    **Cause:** Material costs not entered on sample, or production order created manually without material costs.

    **Solution:**

    1. Check linked sample has material costs entered
    2. Or edit production order to enter material costs manually
  </Accordion>

  <Accordion title="Labor costs showing as 0">
    **Cause:** Rate fields are set to 0.

    **Solution:** Edit production order → Enter rates for all 5 stages → Save.
  </Accordion>

  <Accordion title="Per unit cost seems wrong">
    **Cause:** Quantity is incorrect, or costs are missing.

    **Solution:**

    1. Verify total quantity is correct
    2. Check all cost lines have values
    3. Recalculate: Total ÷ Quantity = Per Unit
  </Accordion>

  <Accordion title="GBP conversion looks wrong">
    **Cause:** Exchange rate may be outdated or incorrect.

    **Solution:** Exchange rate updates automatically. If still wrong, contact admin to verify rate source.
  </Accordion>

  <Accordion title="Additional costs not saving">
    **Cause:** Missing description or invalid amount.

    **Solution:** Enter both a description and a valid number amount.
  </Accordion>

  <Accordion title="Can't edit landed cost">
    **Cause:** Values are calculated from other fields.

    **Solution:** Edit the source fields:

    * Materials: Edit on linked sample or production order
    * Labor: Edit rate fields on production order
    * Additional: Add/edit in Additional Costs section
  </Accordion>
</AccordionGroup>

***

## Common Scenarios

| Situation                     | Action                                           |
| ----------------------------- | ------------------------------------------------ |
| Check total production cost   | Production Order → Landed Cost card → View Total |
| See cost per piece            | Landed Cost card → Per Unit Cost line            |
| Add packaging costs           | Landed Cost → Add Cost → Enter details           |
| Compare cost to selling price | Enter selling price to see Margin section        |
| Check why cost is high        | Review each line item for unexpected values      |

***

## Related Guides

<CardGroup cols={2}>
  <Card title="Rate Management" icon="money-bill" href="/production/rate-management">
    Setting labor rates
  </Card>

  <Card title="Sample Landed Costs" icon="calculator" href="/samples/landed-costs">
    Sample costing comparison
  </Card>
</CardGroup>