Manufacturing SMEs: A Simple Way to Track COGS by Product Line

For manufacturing SMEs, tracking Cost of Goods Sold (COGS) accurately across different product lines is critical—but it often turns into a spreadsheet struggle. When materials, labour, and logistics costs are entered manually, even small mistakes can distort profit margins. What’s needed isn’t more complexity—it’s a simpler, structured way to connect expenses directly to what each product line produces.

Here’s a practical, low-stress method many manufacturers are using with ccMonet to keep COGS clear and real-time, without hiring extra accounting staff.

1. Start by Tagging Expenses by Product Line

Most manufacturers already have cost records—raw materials, subcontracting, packaging—but the data isn’t grouped by what it produces.
With ccMonet, every bill or invoice uploaded can be tagged by product line (e.g., Product A, Product B, or “custom orders”).

AI automatically reads each document—supplier, date, item, currency—and categorises it under the correct product tag. That means:

• Steel for Product A and resin for Product B never get mixed.
• You can see cost trends per line instantly.
• There’s no need to manually maintain separate Excel tabs.

2. Automate Direct Material and Labour Tracking

Material and labour make up the bulk of manufacturing COGS. Instead of waiting for month-end to compile reports, use automation to track both daily.

When suppliers send invoices for materials or contractors, staff can just snap and upload. ccMonet’s AI extracts line-item details and classifies them into:

• Raw materials
• Direct labour or fabrication services
• Logistics and freight

This ensures your direct costs are captured as they occur—not weeks later.

3. Include Overhead Without Guesswork

Indirect costs like factory rent, utilities, and maintenance still need allocation across product lines.
With ccMonet, you can set proportional cost rules (e.g., by output units, floor space, or headcount). The system automatically applies the right allocation formula during report generation, ensuring that overhead is distributed fairly without manual input.

4. See Profit per Product Line in Real Time

Once expenses are categorised, ccMonet’s AI Insights turns that data into instant visibility:

• COGS and gross margin by product type
• Weekly or monthly trends in cost fluctuations
• Comparison between actual and target cost ratios

Instead of waiting for accountants to close the books, manufacturers can view product profitability as production happens.

5. Handle Multi-Currency and Multi-Location Production Easily

Manufacturers sourcing from multiple countries face fluctuating exchange rates and document formats.
ccMonet reads invoices in different currencies and standardises them into your base reporting currency automatically. Each supplier’s costs remain correctly aligned to the right product line, even across different regions or subsidiaries.

6. Close Each Week With a Clean Summary

By automating uploads and tagging, weekly reviews become simple:

1. Check each product line’s total revenue vs. COGS.
2. Review any spikes in supplier or labour expenses.
3. Confirm no untagged transactions remain.

With AI reconciliation, the system flags any unmatched or duplicated items, ensuring your data stays complete before month-end.

A Clearer View of Manufacturing Profitability

Tracking COGS by product line doesn’t need complex ERP setups or extra manpower.
With ccMonet, every invoice, payment, and report ties back to the right product automatically—giving SME manufacturers the accuracy of enterprise systems in a tool simple enough for daily use.

Know your true cost per product line—cleanly, automatically, and in real time.

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