Overhead Costs are business expenses that aren't tied to a specific input material but are still needed to produce the wine. Examples of overhead costs could be utilities, labor, and insurance.
Note from Blended
For most wineries starting to track their costs for the first time, we highly recommend using the Spread allocation methodology for overhead. It has the benefit of being simple to understand and quick to execute. Wineries can always get more complex in their allocation methods later on, as they have more data and have developed consistent processes around tracking.
Step-by-Step: Creating New Costs in Blended
Navigate to the Cost section and click the create button
Select new cost
Enter cost details
Choose cost type
Decide how you'd like to allocate the cost
Save
Overhead Cost Menu
Cost Name
This is a free text field. We recommend choosing a name that is descriptive and unique.
Cost Type
One Time: This cost is a singular line item
Recurring: Use this if you'd like Blended to replicate this line item in future periods. This option is great if you have expenses that are the same each month or are trying to allocate an Annual expense over 12 equal monthly periods.
Cost Category
Choose an existing category or create one of your own. To create your own, simply click into the field and start typing.
Blended aggregates costs at the Category level in many of its views and reports. If you are using an ERP system, we suggest choosing category names that match your subledger account names.
Cost Date
Choose a date for the cost to take effect. In most instances, only the Month and Year matter, not the specific day. Refer to the allocation methodology below for the costs that will be allocated across active Lots.
Cost Amount
This is the Total amount to be allocated.
Assign to Lots
You can either spread the cost across all active Lots within the month or you can choose specific Lots to allocate the cost to.
Spreading across active Lots: We spread the cost weighted by volume and time. For example, a wine that has a large portion of the total cellar volume and spent the full month in the cellar will cost more than a wine with less volume that was bottled on the 5th of the month.
By Lot: If you choose a number of Lots to allocate the cost to, we will allocate the cost based on volume on the day listed for the cost.
Applying Costs to Archived Lots
You are able to assign line items to Lots that are currently in an Archived State. For example, this would allow you to add bottling cost to a Lot that was previously bottled. Ensure you display Archived Lots and use the By Lot allocation methodology.
Applying Negative Costs
Blended allows users to apply a negative cost to a Lot through the overhead cost workflow.
Frequently Asked Questions
To edit costs in Blended, go to the Unpriced Items tab, select the cost from the table of ongoing costs, click Edit, and make your desired changes in the Edit Cost modal. You can change the date, amount, and assignment to lots, or spread it across all active lots.
Yes, you can delete costs in Blended. Go to the Unpriced Items tab, select the cost you want to delete, and click the Delete button.
The spread type in Blended refers to how a cost is distributed. You can assign a cost to specific lots or use the Spread Across All Active Lots option to distribute the cost evenly across all active gallons for the cost period.
To view the cost history in Blended, navigate to the relevant section such as Costs by Month or Costs by Lot. This allows you to see detailed records of costs over time based on your selection criteria.