Costing
Recipe costing software for food manufacturers
Recipe costing software that works out the cost of every batch from the ingredients, packaging and losses actually recorded, compares it with the standard recipe cost, and keeps formulations versioned and confidential.
What is recipe costing software for food manufacturers?
Recipe costing software calculates what a food product costs to make, first from the standard recipe and then from what each batch actually used. Formezy keeps versioned recipes with expected yields, books actual ingredient weights, packaging and losses against every batch, and compares actual cost with standard, so cost per kilogram, per pack or per bar comes from real numbers.
Standard cost and actual cost
Each recipe or formulation holds its ingredients, quantities, expected yield and packaging. With current purchase prices, Formezy calculates a standard cost per kilogram and per pack. When prices change, the standard cost changes with them, so pricing decisions start from current numbers.
On the floor, the batch records what was really used: ingredient weights from the scale, the lots issued, process loss such as frying, baking or cutting loss, rework, and packaging. Actual cost per batch comes from these records, not from the standard sheet.
Where the variance comes from
Comparing actual with standard shows where money goes:
- Ingredient usage above the recipe
- Higher process loss than expected
- Give-away from over-filled packs
- Packaging wastage
- Price differences between standard and actual purchases
Each variance points to a different owner, from purchasing to the line supervisor.
Multi-stage products
Many food products are made in stages: a dough, a syrup, a base blend or a premix is made first and then used in the final product. Formezy gives each intermediate its own recipe, yield and cost, and carries that cost into the products that use it. When the price of sugar or protein changes, every product that depends on it is re-costed, and you can see which margins are under pressure before the next price list goes out.
Formulations stay confidential
Recipes are often a food company's most valuable asset. In Formezy, formulations are stored with role-based access, so operators see what they need to make the batch while full recipes stay with the people you choose. Changes create new versions that must be approved, and every batch records the version used. Formezy is built on the OpenLogic framework, which is designed to keep recipes and trade secrets confidential.
Health bars as an example
A protein bar batch uses oats, nuts, protein, binder syrup and coating, then loses weight in trimming and breakage before flow-wrapping. Recording each input and loss per batch shows the true cost per bar and which step is costing the most. The protein and health bars flow on the functional food ERP page shows each step.
What you get
What Formezy records for costing
Questions
Recipe costing: common questions
Still have a question?
Talk to a food ERP specialist about your own plant and process route.
Can Formezy cost a recipe before we make it?
Yes. The standard cost is calculated from the recipe, expected yield and current purchase prices, so new products and price changes can be costed before production.
How is actual cost calculated?
From the ingredient lots and quantities issued to the batch, the process losses recorded, the packaging used and the output packed, at the actual cost of the lots used.
Can it show why a batch cost more than standard?
Yes. Variances are split into usage, process loss, give-away, packaging and price, so you can see which one caused the difference.
Who can see full recipes?
Only the roles you choose. Others see what they need to make the batch, such as the ingredients and quantities to issue.
Does it work for recipes with several stages?
Yes. Intermediate products, such as dough, syrup or a base blend, can have their own recipes and costs, and the final product's cost includes them.
See your own recipe costed in Formezy
Book a demo and we will walk through your plant, step by step.
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