Overhead Deep Dive Advanced Session Presented by: Dylan Price Lead Implementation Consultant November 10, 2015

1.Overview 2.Deployment Methods 3.Process Flow 4.Prerequisites 5.Demo 6.Final Note – Q & A AGENDA #Orchestrate2015

Purpose Overview #Orchestrate2015

Overview See true value of inventory and cost of production You can add Overhead Items (Labor, Utilities, Depreciation/Amortization, etc.) at any step in the production process As much detail in OBeer for overhead as you capture in the real world #Orchestrate2015

Overview What is Overhead Anything that is a cost of production that is not consumed as inventory Labor Utilities Consumables Taxes Depreciation Expenses Etc. All the costs not already consumed in production #Orchestrate2015

Overview Labor Overhead All the labor that is related to the production process Brewhouse labor Cellar labor Packaging labor Whse Etc. You can account for as much detail of labor as you can track via payroll system #Orchestrate2015

Deploy Deployment Methods #Orchestrate2015

Deploy Deployment Methods Simple First Have a single item that just accrues at the Finished Good level Or at the Bright Beer stage (when the TTB sees the beer) Start from what you know and build from there Complex Later Break out overhead costs onto multiple stages of the production process Include utilities and other miscellaneous costs #Orchestrate2015

Deploy Why Not Hours? Your staff would have to key in their hours on each production order Multitasking doesn’t make this feasible Ex: start a batch before another batch is finished #Orchestrate2015

Process Process Flow #Orchestrate2015

Process Purpose Step 1 – Item Master Set overhead items up as standard cost, non- inventory items #Orchestrate2015

Process Purpose Step 2 – GL Determination Set overhead items up as standard cost, non-inventory items Add them to the BoMs they are associated with standard cost for the overhead items based on the # of BBLs #Orchestrate2015

Process Purpose Step 3 – Bill of Materials Add them to the BoMs they are associated with standard cost for the overhead items based on the # of BBLs #Orchestrate2015

Process Purpose Step 4 – Production Order Overhead items will be calculated based on the BoM #Orchestrate2015

Process Purpose Step 5 – Journal Entry Posting Processing the production order creates a JE Credits the overhead clearing account Debits the inventory asset account This applies the overhead cost to inventory #Orchestrate2015

Prereq Prerequisites #Orchestrate2015

Prereq Purpose Overhead Item #Orchestrate2015

Prereq Purpose Bill of Material #Orchestrate2015

Demo #Orchestrate2015

Q&A Questions? #Orchestrate2015

Thank You!