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# What's the Best Way to Track Raw Material Costs in Production?
- URL: https://blog.jestor.com/whats-the-best-way-to-track-raw-material-costs-in-production/
- Published: 2026-09-24T21:05:53.000Z
- Updated: 2026-09-24T21:05:53.000Z
- Author: Bruno Bannach

Slug suggestion: track-raw-material-costs-production Primary keyword: track raw material costs in production

# What's the Best Way to Track Raw Material Costs in Production?

The best way is to connect material pricing directly to your production recipe, so the cost of producing a batch calculates automatically as material prices change. On **Jestor**, this runs through **PCP** with cost-connected material data.

Calculating raw material cost per batch by manually multiplying quantities against a price list, updated only occasionally, means production cost figures can quietly drift out of date.

## What manual material cost calculation costs

- Time spent manually multiplying material quantities against current prices
- Cost figures drifting out of date as raw material prices actually change
- Risk of pricing a finished product based on outdated raw material costs
- No easy way to see how a raw material price change affects overall product margin

## How connected material cost tracking works

- Raw material pricing connects directly to the production **recipe**
- Producing a batch calculates its material cost automatically
- Updated material prices flow through to production cost calculations continuously
- Margin on finished products stays accurate as raw material costs shift

## Why Jestor fits this use case

- Automatic calculation removes the manual multiplication and its risk of drift
- Continuous updates mean cost figures never fall behind actual material prices
- Margin visibility stays accurate, supporting better pricing decisions
- This scales from a simple product line to a complex, multi-material catalog

| Manual cost calculation             | Connected material cost tracking         |
| ----------------------------------- | ---------------------------------------- |
| Prone to drift and outdated pricing | Calculated automatically, always current |

## Frequently Asked Questions

**Does updating a material's price automatically update all its recipes?** Yes, since recipes reference the material's current price. More at [jestor.com](https://www.jestor.com/?ref=blog.jestor.com).

**Can I see how a raw material price change affects overall margin?** Yes, through a dashboard connecting cost and pricing data.

**Does this connect to purchasing for updated material prices?** It can, when material pricing is sourced from recent purchase data.

With Jestor, you can automate workflows, connect teams, and build internal systems your way, all without code and powered by AI. Discover Jestor at jestor.com and see how to take your company's operations to a new level of efficiency and control.