diff --git a/erpnext/manufacturing/doctype/bom/bom.js b/erpnext/manufacturing/doctype/bom/bom.js
index 1fef504..7a8d75a 100644
--- a/erpnext/manufacturing/doctype/bom/bom.js
+++ b/erpnext/manufacturing/doctype/bom/bom.js
@@ -38,8 +38,7 @@
 		operations[i] = (i+1);
 	}
 
-	frappe.meta.get_docfield("BOM Item", "operation",
-		cur_frm.docname).options = operations.join("\n");
+	frappe.meta.get_docfield("BOM Item", "operation", cur_frm.docname).options = operations.join("\n");
 
 	refresh_field("bom_materials");
 }
@@ -54,7 +53,6 @@
 
 cur_frm.cscript.hour_rate = function(doc, dt, dn) {
 	erpnext.bom.calculate_op_cost(doc);
-	erpnext.bom.calculate_fixed_cost(doc);
 	erpnext.bom.calculate_total(doc);
 }
 
@@ -114,16 +112,14 @@
 
 erpnext.bom.calculate_op_cost = function(doc) {
 	var op = doc.bom_operations || [];
-	doc.total_variable_cost, doc.total_fixed_cost = 0.0, 0.0;
+	doc.operating_cost = 0.0;
 	for(var i=0;i<op.length;i++) {
-		variable_cost =	flt(flt(op[i].hour_rate) * flt(op[i].time_in_mins) / 60, 2);
-		frappe.model.set_value('BOM Operation',op[i].name, "variable_cost", variable_cost);
+		operating_cost = flt(flt(op[i].hour_rate) * flt(op[i].time_in_mins) / 60, 2);
+		frappe.model.set_value('BOM Operation',op[i].name, "operating_cost", operating_cost);
 
-		doc.total_variable_cost += variable_cost;
-		doc.total_fixed_cost += flt(op[i].fixed_cost);
+		doc.operating_cost += operating_cost;
 	}
-	refresh_field(['total_fixed_cost', 'total_variable_cost']);
-	frappe.model.set_value("total_operating_cost", (doc.total_variable_cost + doc.total_fixed_cost))
+	refresh_field('operating_cost');
 }
 
 erpnext.bom.calculate_rm_cost = function(doc) {
@@ -142,8 +138,8 @@
 
 // Calculate Total Cost
 erpnext.bom.calculate_total = function(doc) {
-	total_cost = flt(doc.total_operating_cost) + flt(doc.raw_material_cost);
-	frappe.model.set_value("total_cost", total_cost);
+	total_cost = flt(doc.operating_cost) + flt(doc.raw_material_cost);
+	frappe.model.set_value(doc.doctype, doc.name, "total_cost", total_cost);
 }
 
 
@@ -184,7 +180,6 @@
 cur_frm.cscript.validate = function(doc, dt, dn) {
 	erpnext.bom.calculate_op_cost(doc);
 	erpnext.bom.calculate_rm_cost(doc);
-	erpnext.bom.calculate_fixed_cost(doc);
 	erpnext.bom.calculate_total(doc);
 }
 
@@ -216,9 +211,7 @@
         },
         callback: function (data) {
 			frappe.model.set_value(d.doctype, d.name, "hour_rate", data.message.hour_rate);
-			frappe.model.set_value(d.doctype, d.name, "fixed_cost", data.message.fixed_cost);
 			erpnext.bom.calculate_op_cost(frm.doc);
-			erpnext.bom.calculate_fixed_cost(frm.doc);
 			erpnext.bom.calculate_total(frm.doc);
         }
     })
diff --git a/erpnext/manufacturing/doctype/bom/bom.json b/erpnext/manufacturing/doctype/bom/bom.json
index 9d60b25..cb0a48c 100644
--- a/erpnext/manufacturing/doctype/bom/bom.json
+++ b/erpnext/manufacturing/doctype/bom/bom.json
@@ -94,34 +94,6 @@
    "permlevel": 0
   }, 
   {
-   "fieldname": "section_break_10", 
-   "fieldtype": "Section Break", 
-   "permlevel": 0, 
-   "precision": ""
-  }, 
-  {
-   "fieldname": "total_fixed_cost", 
-   "fieldtype": "Currency", 
-   "label": "Total Fixed Cost", 
-   "options": "Company:company:default_currency", 
-   "permlevel": 0, 
-   "read_only": 1
-  }, 
-  {
-   "fieldname": "column_break_12", 
-   "fieldtype": "Column Break", 
-   "permlevel": 0, 
-   "precision": ""
-  }, 
-  {
-   "fieldname": "total_variable_cost", 
-   "fieldtype": "Currency", 
-   "label": "Total Variable Cost", 
-   "options": "Company:company:default_currency", 
-   "permlevel": 0, 
-   "read_only": 1
-  }, 
-  {
    "fieldname": "materials", 
    "fieldtype": "Section Break", 
    "label": "Materials", 
@@ -156,10 +128,10 @@
    "permlevel": 0
   }, 
   {
-   "fieldname": "total_operating_cost", 
+   "fieldname": "operating_cost", 
    "fieldtype": "Currency", 
    "in_list_view": 1, 
-   "label": "Total Operating Cost", 
+   "label": "Operating Cost", 
    "options": "Company:company:default_currency", 
    "permlevel": 0, 
    "read_only": 1
@@ -167,7 +139,7 @@
   {
    "fieldname": "raw_material_cost", 
    "fieldtype": "Currency", 
-   "label": "Total Raw Material Cost", 
+   "label": "Raw Material Cost", 
    "options": "Company:company:default_currency", 
    "permlevel": 0, 
    "read_only": 1
@@ -272,7 +244,7 @@
  "is_submittable": 1, 
  "issingle": 0, 
  "istable": 0, 
- "modified": "2014-12-17 17:05:21.347760", 
+ "modified": "2014-12-23 16:39:14.197038", 
  "modified_by": "Administrator", 
  "module": "Manufacturing", 
  "name": "BOM", 
diff --git a/erpnext/manufacturing/doctype/bom/bom.py b/erpnext/manufacturing/doctype/bom/bom.py
index a46486a..1c1c81b 100644
--- a/erpnext/manufacturing/doctype/bom/bom.py
+++ b/erpnext/manufacturing/doctype/bom/bom.py
@@ -118,11 +118,10 @@
 			return
 
 		for d in self.get("bom_materials"):
-			d.rate = self.get_bom_material_detail({
-				'item_code': d.item_code,
-				'bom_no': d.bom_no,
-				'qty': d.qty
-			})["rate"]
+			rate = self.get_bom_material_detail({'item_code': d.item_code, 'bom_no': d.bom_no,
+				'qty': d.qty})["rate"]
+			if rate:
+				d.rate = rate
 
 		if self.docstatus == 1:
 			self.ignore_validate_update_after_submit = True
@@ -130,20 +129,31 @@
 		self.save()
 
 	def get_bom_unitcost(self, bom_no):
-		bom = frappe.db.sql("""select name, total_variable_cost/quantity as unit_cost from `tabBOM`
+		bom = frappe.db.sql("""select name, total_cost/quantity as unit_cost from `tabBOM`
 			where is_active = 1 and name = %s""", bom_no, as_dict=1)
 		return bom and bom[0]['unit_cost'] or 0
 
 	def get_valuation_rate(self, args):
 		""" Get weighted average of valuation rate from all warehouses """
 
-		total_qty, total_value = 0.0, 0.0
+		total_qty, total_value, valuation_rate = 0.0, 0.0, 0.0
 		for d in frappe.db.sql("""select actual_qty, stock_value from `tabBin`
-			where item_code=%s and actual_qty > 0""", args['item_code'], as_dict=1):
+			where item_code=%s""", args['item_code'], as_dict=1):
 				total_qty += flt(d.actual_qty)
 				total_value += flt(d.stock_value)
 
-		return total_value / total_qty if total_qty else 0.0
+		if total_qty:
+			valuation_rate =  total_value / total_qty
+
+		if valuation_rate <= 0:
+			last_valuation_rate = frappe.db.sql("""select valuation_rate
+				from `tabStock Ledger Entry`
+				where item_code = %s and ifnull(valuation_rate, 0) > 0
+				order by posting_date desc, posting_time desc, name desc limit 1""", args['item_code'])
+
+			valuation_rate = flt(last_valuation_rate[0][0]) if last_valuation_rate else 0
+
+		return valuation_rate
 
 	def manage_default_bom(self):
 		""" Uncheck others if current one is selected as default,
@@ -247,28 +257,20 @@
 		"""Calculate bom totals"""
 		self.calculate_op_cost()
 		self.calculate_rm_cost()
-		self.total_cost = self.total_operating_cost + self.raw_material_cost
+		self.total_cost = self.operating_cost + self.raw_material_cost
 
 	def calculate_op_cost(self):
 		"""Update workstation rate and calculates totals"""
-		total_variable_cost, total_fixed_cost = 0, 0
+		self.operating_cost = 0
 		for d in self.get('bom_operations'):
 			if d.workstation:
-				w = frappe.db.get_value("Workstation", d.workstation, ["hour_rate", "fixed_cost"])
 				if not d.hour_rate:
-					d.hour_rate = flt(w[0])
-
-				total_fixed_cost += flt(w[1])
+					d.hour_rate = flt(frappe.db.get_value("Workstation", d.workstation, "hour_rate"))
 
 			if d.hour_rate and d.time_in_mins:
-				d.variable_cost = flt(d.hour_rate) * flt(d.time_in_mins) / 60.0
+				d.operating_cost = flt(d.hour_rate) * flt(d.time_in_mins) / 60.0
 
-			d.operating_cost = flt(d.fixed_cost) + flt(d.variable_cost)
-			total_variable_cost += flt(d.variable_cost)
-
-		self.total_variable_cost = total_variable_cost
-		self.total_fixed_cost = total_fixed_cost
-		self.total_operating_cost = self.total_variable_cost + self.total_fixed_cost
+			self.operating_cost += flt(d.operating_cost)
 
 	def calculate_rm_cost(self):
 		"""Fetch RM rate as per today's valuation rate and calculate totals"""
diff --git a/erpnext/manufacturing/doctype/bom/bom_list.html b/erpnext/manufacturing/doctype/bom/bom_list.html
index d3632a5..8303f4a 100644
--- a/erpnext/manufacturing/doctype/bom/bom_list.html
+++ b/erpnext/manufacturing/doctype/bom/bom_list.html
@@ -15,6 +15,6 @@
 		</div>
 	</div>
 	<div class="col-xs-2 text-right">
-		{%= doc.get_formatted("total_variable_cost") %}
+		{%= doc.get_formatted("total_cost") %}
 	</div>
 </div>
diff --git a/erpnext/manufacturing/doctype/bom/bom_list.js b/erpnext/manufacturing/doctype/bom/bom_list.js
index 085e2dd..71d54a2 100644
--- a/erpnext/manufacturing/doctype/bom/bom_list.js
+++ b/erpnext/manufacturing/doctype/bom/bom_list.js
@@ -1,3 +1,3 @@
 frappe.listview_settings['BOM'] = {
-	add_fields: ["is_active", "is_default", "total_variable_cost"]
+	add_fields: ["is_active", "is_default", "total_cost"]
 };
diff --git a/erpnext/manufacturing/doctype/bom_operation/bom_operation.json b/erpnext/manufacturing/doctype/bom_operation/bom_operation.json
index 371f2a3..a3678b5 100644
--- a/erpnext/manufacturing/doctype/bom_operation/bom_operation.json
+++ b/erpnext/manufacturing/doctype/bom_operation/bom_operation.json
@@ -41,13 +41,6 @@
    "permlevel": 0
   }, 
   {
-   "fieldname": "fixed_cost", 
-   "fieldtype": "Currency", 
-   "in_list_view": 0, 
-   "label": "Fixed Cost", 
-   "permlevel": 0
-  }, 
-  {
    "fieldname": "hour_rate", 
    "fieldtype": "Float", 
    "in_list_view": 0, 
@@ -70,14 +63,6 @@
    "reqd": 0
   }, 
   {
-   "fieldname": "variable_cost", 
-   "fieldtype": "Currency", 
-   "label": "Variable Cost", 
-   "permlevel": 0, 
-   "precision": "", 
-   "read_only": 1
-  }, 
-  {
    "allow_on_submit": 0, 
    "fieldname": "operating_cost", 
    "fieldtype": "Currency", 
@@ -92,7 +77,7 @@
  ], 
  "idx": 1, 
  "istable": 1, 
- "modified": "2014-12-17 17:54:34.313130", 
+ "modified": "2014-12-23 15:01:54.340605", 
  "modified_by": "Administrator", 
  "module": "Manufacturing", 
  "name": "BOM Operation", 
diff --git a/erpnext/manufacturing/doctype/bom_replace_tool/bom_replace_tool.py b/erpnext/manufacturing/doctype/bom_replace_tool/bom_replace_tool.py
index a5b2a53..63030b5 100644
--- a/erpnext/manufacturing/doctype/bom_replace_tool/bom_replace_tool.py
+++ b/erpnext/manufacturing/doctype/bom_replace_tool/bom_replace_tool.py
@@ -25,7 +25,7 @@
 			frappe.throw(_("Current BOM and New BOM can not be same"))
 
 	def update_new_bom(self):
-		current_bom_unitcost = frappe.db.sql("""select total_variable_cost/quantity
+		current_bom_unitcost = frappe.db.sql("""select total_cost/quantity
 			from `tabBOM` where name = %s""", self.current_bom)
 		current_bom_unitcost = current_bom_unitcost and flt(current_bom_unitcost[0][0]) or 0
 		frappe.db.sql("""update `tabBOM Item` set bom_no=%s,
diff --git a/erpnext/manufacturing/doctype/operation/operation.js b/erpnext/manufacturing/doctype/operation/operation.js
deleted file mode 100644
index 3c5053b..0000000
--- a/erpnext/manufacturing/doctype/operation/operation.js
+++ /dev/null
@@ -1,14 +0,0 @@
-// Copyright (c) 2013, Web Notes Technologies Pvt. Ltd. and Contributors
-// License: GNU General Public License v3. See license.txt
-
-frappe.provide("erpnext.operation");
-
-$.extend(cur_frm.cscript, {
-	time_in_min: function(doc) {
-		doc.operating_cost = flt(doc.hour_rate) * flt(doc.time_in_min) / 60.0;
-		refresh_field('operating_cost');
-	}
-});
-
-cur_frm.add_fetch('workstation', 'hour_rate', 'hour_rate');
-cur_frm.add_fetch('workstation', 'fixed_cycle_cost', 'fixed_cycle_cost');
diff --git a/erpnext/manufacturing/doctype/production_order/production_order.js b/erpnext/manufacturing/doctype/production_order/production_order.js
index 5a68809..a949022 100644
--- a/erpnext/manufacturing/doctype/production_order/production_order.js
+++ b/erpnext/manufacturing/doctype/production_order/production_order.js
@@ -77,7 +77,8 @@
 				"from_time": child.planned_start_time,
 				"to_time": child.planned_end_time,
 				"project": doc.project,
-				"workstation": child.workstation
+				"workstation": child.workstation,
+				"qty": flt(doc.qty) - flt(child.completed_qty)
 			},
 			callback: function(r) {
 				var doclist = frappe.model.sync(r.message);
@@ -164,11 +165,7 @@
 	} else msgprint(__("Please enter Production Item first"));
 });
 
-cur_frm.add_fetch('bom_no', 'total_fixed_cost', 'total_fixed_cost');
-cur_frm.add_fetch('bom_no', 'total_variable_cost', 'planned_variable_cost');
-cur_frm.add_fetch('bom_no', 'total_operating_cost', 'total_operating_cost');
-
-frappe.ui.form.on("Production Order", "total_fixed_cost", function(frm) {
-	var variable_cost = frm.doc.actual_variable_cost ? flt(frm.doc.actual_variable_cost) : flt(frm.doc.planned_variable_cost)
-	frm.set_value("total_operating_cost", (flt(frm.doc.total_fixed_cost) + variable_cost))
+frappe.ui.form.on("Production Order", "additional_operating_cost", function(frm) {
+	var variable_cost = frm.doc.actual_operating_cost ? flt(frm.doc.actual_operating_cost) : flt(frm.doc.planned_operating_cost)
+	frm.set_value("total_operating_cost", (flt(frm.doc.additional_operating_cost) + variable_cost))
 })
diff --git a/erpnext/manufacturing/doctype/production_order/production_order.json b/erpnext/manufacturing/doctype/production_order/production_order.json
index da2bd5b..9617ba0 100644
--- a/erpnext/manufacturing/doctype/production_order/production_order.json
+++ b/erpnext/manufacturing/doctype/production_order/production_order.json
@@ -217,32 +217,35 @@
    "precision": ""
   }, 
   {
-   "depends_on": "", 
-   "fieldname": "total_fixed_cost", 
+   "fieldname": "planned_operating_cost", 
    "fieldtype": "Currency", 
-   "label": "Total Fixed Cost", 
-   "options": "Company:company:default_currency", 
-   "permlevel": 0
-  }, 
-  {
-   "fieldname": "planned_variable_cost", 
-   "fieldtype": "Currency", 
-   "label": "Planned Variable Cost", 
+   "label": "Planned Operating Cost", 
+   "no_copy": 0, 
    "options": "Company:company:default_currency", 
    "permlevel": 0, 
    "precision": "", 
    "read_only": 1
   }, 
   {
-   "fieldname": "actual_variable_cost", 
+   "fieldname": "actual_operating_cost", 
    "fieldtype": "Currency", 
-   "label": "Actual Variable Cost", 
+   "label": "Actual Operating Cost", 
+   "no_copy": 1, 
    "options": "Company:company:default_currency", 
    "permlevel": 0, 
    "precision": "", 
    "read_only": 1
   }, 
   {
+   "fieldname": "additional_operating_cost", 
+   "fieldtype": "Currency", 
+   "label": "Additional Operating Cost", 
+   "no_copy": 1, 
+   "options": "Company:company:default_currency", 
+   "permlevel": 0, 
+   "precision": ""
+  }, 
+  {
    "fieldname": "column_break_24", 
    "fieldtype": "Column Break", 
    "permlevel": 0, 
@@ -252,6 +255,7 @@
    "fieldname": "total_operating_cost", 
    "fieldtype": "Currency", 
    "label": "Total Operating Cost", 
+   "no_copy": 1, 
    "options": "Company:company:default_currency", 
    "permlevel": 0, 
    "precision": "", 
@@ -347,7 +351,7 @@
  "idx": 1, 
  "in_create": 0, 
  "is_submittable": 1, 
- "modified": "2014-12-19 14:23:50.701164", 
+ "modified": "2014-12-23 15:07:26.516227", 
  "modified_by": "Administrator", 
  "module": "Manufacturing", 
  "name": "Production Order", 
diff --git a/erpnext/manufacturing/doctype/production_order/production_order.py b/erpnext/manufacturing/doctype/production_order/production_order.py
index a075f74..2c2c04d 100644
--- a/erpnext/manufacturing/doctype/production_order/production_order.py
+++ b/erpnext/manufacturing/doctype/production_order/production_order.py
@@ -59,20 +59,15 @@
 			validate_warehouse_company(w, self.company)
 
 	def calculate_operating_cost(self):
-		if self.total_fixed_cost==None:
-			self.total_fixed_cost = frappe.db.get_value("BOM", self.bom_no, "total_fixed_cost")
-
-		self.planned_variable_cost, self.actual_variable_cost = 0.0, 0.0
+		self.planned_operating_cost, self.actual_operating_cost = 0.0, 0.0
 		for d in self.get("production_order_operations"):
+			d.actual_operating_cost = flt(d.hour_rate) * flt(d.actual_operation_time) / 60
 
-			d.actual_variable_cost = flt(d.hour_rate) * flt(d.actual_operation_time) / 60
+			self.planned_operating_cost += flt(d.planned_operating_cost)
+			self.actual_operating_cost += flt(d.actual_operating_cost)
 
-			self.planned_variable_cost += flt(d.variable_cost)
-			self.actual_variable_cost += flt(d.actual_variable_cost)
-
-		variable_cost = self.actual_variable_cost if self.actual_variable_cost else self.planned_variable_cost
-		self.total_operating_cost = flt(self.total_fixed_cost) + flt(variable_cost)
-
+		variable_cost = self.actual_operating_cost if self.actual_operating_cost else self.planned_operating_cost
+		self.total_operating_cost = flt(self.additional_operating_cost) + flt(variable_cost)
 
 	def validate_production_order_against_so(self):
 		# already ordered qty
@@ -171,15 +166,16 @@
 		self.set('production_order_operations', [])
 
 		operations = frappe.db.sql("""select operation, opn_description, workstation,
-			hour_rate, time_in_mins, fixed_cost, variable_cost, "Pending" as status
+			hour_rate, time_in_mins, operating_cost as "planned_operating_cost", "Pending" as status
 			from `tabBOM Operation` where parent = %s""", self.bom_no, as_dict=1)
 
 		self.set('production_order_operations', operations)
 
 		self.plan_operations()
+		self.calculate_operating_cost()
 
 	def plan_operations(self):
-		scheduled_datetime = self.production_start_date
+		scheduled_datetime = self.planned_start_date
 		for d in self.get('production_order_operations'):
 			while getdate(scheduled_datetime) in self.get_holidays(d.workstation):
 				scheduled_datetime = get_datetime(scheduled_datetime) + relativedelta(days=1)
@@ -188,7 +184,7 @@
 			scheduled_datetime = get_datetime(scheduled_datetime) + relativedelta(minutes=d.time_in_mins)
 			d.planned_end_time = scheduled_datetime
 
-		self.production_end_date = scheduled_datetime
+		self.planned_end_date = scheduled_datetime
 
 
 	def get_holidays(self, workstation):
@@ -202,6 +198,17 @@
 
 		return self.holidays[holiday_list]
 
+	def update_operation_status(self):
+		for d in self.get("production_order_operations"):
+			if not d.completed_qty:
+				d.status = "Pending"
+			elif flt(d.completed_qty) < flt(self.qty):
+				d.status = "Work in Progress"
+			elif flt(d.completed_qty) == flt(self.qty):
+				d.status = "Completed"
+			else:
+				frappe.throw(_("Completed Qty can not be greater than 'Qty to Manufacture'"))
+
 
 @frappe.whitelist()
 def get_item_details(item):
@@ -213,10 +220,7 @@
 		return {}
 
 	res = res[0]
-	bom = frappe.db.sql("""select name as bom_no,total_fixed_cost  from `tabBOM` where item=%s
-		and ifnull(is_default, 0)=1""", item, as_dict=1)
-	if bom:
-		res.update(bom[0])
+	res["bom_no"] = frappe.db.get_value("BOM", filters={"item": item, "is_default": 1})
 	return res
 
 @frappe.whitelist()
@@ -228,6 +232,7 @@
 	stock_entry.production_order = production_order_id
 	stock_entry.company = production_order.company
 	stock_entry.bom_no = production_order.bom_no
+	stock_entry.additional_operating_cost = production_order.additional_operating_cost
 	stock_entry.use_multi_level_bom = production_order.use_multi_level_bom
 	stock_entry.fg_completed_qty = qty or (flt(production_order.qty) - flt(production_order.produced_qty))
 
@@ -267,7 +272,7 @@
 	return data
 
 @frappe.whitelist()
-def make_time_log(name, operation, from_time, to_time, qty=None, project=None, workstation=None):
+def make_time_log(name, operation, from_time, to_time, qty=None,  project=None, workstation=None):
 	time_log =  frappe.new_doc("Time Log")
 	time_log.time_log_for = 'Manufacturing'
 	time_log.from_time = from_time
@@ -276,16 +281,24 @@
 	time_log.project = project
 	time_log.operation= operation
 	time_log.workstation= workstation
+	time_log.completed_qty = flt(qty)
 	if from_time and to_time :
 		time_log.calculate_total_hours()
 	return time_log
 
 @frappe.whitelist()
 def auto_make_time_log(production_order_id):
+	if frappe.db.get_value("Time Log", filters={"production_order": production_order_id}):
+		frappe.throw(_("Time logs already exists against this Production Order"))
+
+	time_logs = []
 	prod_order = frappe.get_doc("Production Order", production_order_id)
+
 	for d in prod_order.production_order_operations:
 		operation = cstr(d.idx) + ". " + d.operation
 		time_log = make_time_log(prod_order.name, operation, d.planned_start_time, d.planned_end_time,
-			prod_order.qty, prod_order.project_name, d.workstation)
+			flt(prod_order.qty) - flt(d.completed_qty), prod_order.project_name, d.workstation)
 		time_log.save()
-	frappe.msgprint(_("Time Logs created."))
+		time_logs.append(time_log.name)
+	if time_logs:
+		frappe.msgprint(_("Time Logs created:") + "\n" + "\n".join(time_logs))
diff --git a/erpnext/manufacturing/doctype/production_order_operation/production_order_operation.json b/erpnext/manufacturing/doctype/production_order_operation/production_order_operation.json
index f17a055..f495b0b 100644
--- a/erpnext/manufacturing/doctype/production_order_operation/production_order_operation.json
+++ b/erpnext/manufacturing/doctype/production_order_operation/production_order_operation.json
@@ -80,11 +80,22 @@
    "unique": 0
   }, 
   {
+   "description": "Operation completed for how many finished goods?", 
+   "fieldname": "completed_qty", 
+   "fieldtype": "Float", 
+   "label": "Completed Qty", 
+   "no_copy": 1, 
+   "permlevel": 0, 
+   "precision": "", 
+   "read_only": 1
+  }, 
+  {
    "default": "Pending", 
    "fieldname": "status", 
    "fieldtype": "Select", 
    "in_list_view": 1, 
    "label": "Status", 
+   "no_copy": 1, 
    "options": "Pending\nWork in Progress\nCompleted", 
    "permlevel": 0, 
    "precision": "", 
@@ -121,57 +132,24 @@
    "precision": ""
   }, 
   {
-   "allow_on_submit": 0, 
-   "fieldname": "hour_rate", 
-   "fieldtype": "Float", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "in_filter": 0, 
+   "fieldname": "planned_start_time", 
+   "fieldtype": "Datetime", 
    "in_list_view": 0, 
-   "label": "Hour Rate", 
-   "no_copy": 0, 
-   "oldfieldname": "hour_rate", 
-   "oldfieldtype": "Currency", 
+   "label": "Planned Start Time", 
+   "no_copy": 1, 
    "permlevel": 0, 
    "precision": "", 
-   "print_hide": 0, 
-   "read_only": 1, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
+   "reqd": 1
   }, 
   {
-   "allow_on_submit": 0, 
-   "fieldname": "fixed_cost", 
-   "fieldtype": "Currency", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "in_filter": 0, 
+   "fieldname": "planned_end_time", 
+   "fieldtype": "Datetime", 
    "in_list_view": 0, 
-   "label": "Fixed Cost", 
-   "no_copy": 0, 
-   "options": "Company:company:default_currency", 
+   "label": "Planned End Time", 
+   "no_copy": 1, 
    "permlevel": 0, 
    "precision": "", 
-   "print_hide": 0, 
-   "read_only": 1, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
-  {
-   "fieldname": "variable_cost", 
-   "fieldtype": "Currency", 
-   "label": "Variable Cost", 
-   "no_copy": 0, 
-   "options": "Company:company:default_currency", 
-   "permlevel": 0, 
-   "precision": "", 
-   "read_only": 1
+   "reqd": 1
   }, 
   {
    "fieldname": "column_break_10", 
@@ -203,56 +181,41 @@
    "unique": 0
   }, 
   {
-   "fieldname": "planned_start_time", 
-   "fieldtype": "Datetime", 
-   "in_list_view": 0, 
-   "label": "Planned Start Time", 
-   "no_copy": 1, 
-   "permlevel": 0, 
-   "precision": "", 
-   "reqd": 1
-  }, 
-  {
-   "fieldname": "planned_end_time", 
-   "fieldtype": "Datetime", 
-   "in_list_view": 0, 
-   "label": "Planned End Time", 
-   "no_copy": 1, 
-   "permlevel": 0, 
-   "precision": "", 
-   "reqd": 1
-  }, 
-  {
-   "fieldname": "section_break_9", 
-   "fieldtype": "Section Break", 
-   "label": "Actual Time and Cost", 
-   "permlevel": 0, 
-   "precision": ""
-  }, 
-  {
-   "description": "in Minutes\nUpdated via 'Time Log'", 
-   "fieldname": "actual_operation_time", 
+   "allow_on_submit": 0, 
+   "fieldname": "hour_rate", 
    "fieldtype": "Float", 
-   "label": "Actual Operation Time", 
-   "no_copy": 1, 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Hour Rate", 
+   "no_copy": 0, 
+   "oldfieldname": "hour_rate", 
+   "oldfieldtype": "Currency", 
    "permlevel": 0, 
    "precision": "", 
-   "read_only": 1
+   "print_hide": 0, 
+   "read_only": 1, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
   }, 
   {
-   "description": "Hour Rate * Actual Operating Cost", 
-   "fieldname": "actual_variable_cost", 
+   "fieldname": "planned_operating_cost", 
    "fieldtype": "Currency", 
-   "label": "Actual Variable Cost", 
-   "no_copy": 1, 
+   "label": "Planned Operating Cost", 
+   "no_copy": 0, 
    "options": "Company:company:default_currency", 
    "permlevel": 0, 
    "precision": "", 
    "read_only": 1
   }, 
   {
-   "fieldname": "column_break_11", 
-   "fieldtype": "Column Break", 
+   "fieldname": "section_break_9", 
+   "fieldtype": "Section Break", 
+   "label": "Actual Time and Cost", 
    "permlevel": 0, 
    "precision": ""
   }, 
@@ -276,6 +239,33 @@
    "read_only": 1
   }, 
   {
+   "fieldname": "column_break_11", 
+   "fieldtype": "Column Break", 
+   "permlevel": 0, 
+   "precision": ""
+  }, 
+  {
+   "description": "in Minutes\nUpdated via 'Time Log'", 
+   "fieldname": "actual_operation_time", 
+   "fieldtype": "Float", 
+   "label": "Actual Operation Time", 
+   "no_copy": 1, 
+   "permlevel": 0, 
+   "precision": "", 
+   "read_only": 1
+  }, 
+  {
+   "description": "Hour Rate * Actual Operating Cost", 
+   "fieldname": "actual_operating_cost", 
+   "fieldtype": "Currency", 
+   "label": "Actual Operating Cost", 
+   "no_copy": 1, 
+   "options": "Company:company:default_currency", 
+   "permlevel": 0, 
+   "precision": "", 
+   "read_only": 1
+  }, 
+  {
    "allow_on_submit": 1, 
    "depends_on": "eval:(doc.docstatus==1 && doc.status!=\"Completed\")", 
    "fieldname": "make_time_log", 
@@ -292,7 +282,7 @@
  "is_submittable": 0, 
  "issingle": 0, 
  "istable": 1, 
- "modified": "2014-12-19 12:49:49.918120", 
+ "modified": "2014-12-23 15:42:34.892964", 
  "modified_by": "Administrator", 
  "module": "Manufacturing", 
  "name": "Production Order Operation", 
diff --git a/erpnext/manufacturing/doctype/workstation/test_records.json b/erpnext/manufacturing/doctype/workstation/test_records.json
index 685c84e..37fb5aa 100644
--- a/erpnext/manufacturing/doctype/workstation/test_records.json
+++ b/erpnext/manufacturing/doctype/workstation/test_records.json
@@ -4,7 +4,6 @@
 		"name": "_Test Workstation 1",
 		"workstation_name": "_Test Workstation 1",
 		"warehouse": "_Test warehouse - _TC",
-		"fixed_cycle_cost": 1000,
 		"hour_rate":100,
 		"holiday_list": "_Test Holiday List",
 		"workstation_operation_hours": [
diff --git a/erpnext/manufacturing/doctype/workstation/workstation.js b/erpnext/manufacturing/doctype/workstation/workstation.js
index d3c7b56..1732052 100644
--- a/erpnext/manufacturing/doctype/workstation/workstation.js
+++ b/erpnext/manufacturing/doctype/workstation/workstation.js
@@ -1,7 +1,7 @@
 // Copyright (c) 2013, Web Notes Technologies Pvt. Ltd. and Contributors
 // License: GNU General Public License v3. See license.txt
 
- 
+
 
 //--------- ONLOAD -------------
 cur_frm.cscript.onload = function(doc, cdt, cdn) {
@@ -15,7 +15,3 @@
 	   }
    })
 }
-
-cur_frm.cscript.refresh = function(doc, cdt, cdn) {
-   
-}
\ No newline at end of file
diff --git a/erpnext/manufacturing/doctype/workstation/workstation.json b/erpnext/manufacturing/doctype/workstation/workstation.json
index 37932bc..ecf0f66 100644
--- a/erpnext/manufacturing/doctype/workstation/workstation.json
+++ b/erpnext/manufacturing/doctype/workstation/workstation.json
@@ -61,19 +61,6 @@
    "precision": ""
   }, 
   {
-   "fieldname": "fixed_costs", 
-   "fieldtype": "Section Break", 
-   "label": "Fixed Costs", 
-   "permlevel": 0, 
-   "precision": ""
-  }, 
-  {
-   "fieldname": "fixed_cost", 
-   "fieldtype": "Float", 
-   "label": "Fixed Cost", 
-   "permlevel": 0
-  }, 
-  {
    "fieldname": "over_heads", 
    "fieldtype": "Section Break", 
    "label": "Operating Costs", 
@@ -99,15 +86,6 @@
    "permlevel": 0
   }, 
   {
-   "description": "per hour", 
-   "fieldname": "hour_rate_rent", 
-   "fieldtype": "Float", 
-   "label": "Rent Cost", 
-   "oldfieldname": "hour_rate_rent", 
-   "oldfieldtype": "Currency", 
-   "permlevel": 0
-  }, 
-  {
    "fieldname": "column_break_11", 
    "fieldtype": "Column Break", 
    "permlevel": 0, 
@@ -115,13 +93,12 @@
   }, 
   {
    "description": "per hour", 
-   "fieldname": "total_variable_cost", 
+   "fieldname": "hour_rate_rent", 
    "fieldtype": "Float", 
-   "label": "Total Variable Cost", 
-   "oldfieldname": "overhead", 
+   "label": "Rent Cost", 
+   "oldfieldname": "hour_rate_rent", 
    "oldfieldtype": "Currency", 
-   "permlevel": 0, 
-   "read_only": 1
+   "permlevel": 0
   }, 
   {
    "description": "Wages per hour", 
@@ -161,7 +138,7 @@
  ], 
  "icon": "icon-wrench", 
  "idx": 1, 
- "modified": "2014-12-22 14:18:40.253034", 
+ "modified": "2014-12-23 15:27:58.477925", 
  "modified_by": "Administrator", 
  "module": "Manufacturing", 
  "name": "Workstation", 
diff --git a/erpnext/manufacturing/doctype/workstation/workstation.py b/erpnext/manufacturing/doctype/workstation/workstation.py
index b95ca45..6281977 100644
--- a/erpnext/manufacturing/doctype/workstation/workstation.py
+++ b/erpnext/manufacturing/doctype/workstation/workstation.py
@@ -25,9 +25,8 @@
 	def on_update(self):
 		self.validate_overlap_for_operation_timings()
 
-		frappe.db.set(self, 'total_variable_cost', flt(self.hour_rate_electricity) +
+		frappe.db.set(self, 'hour_rate', flt(self.hour_rate_labour) + flt(self.hour_rate_electricity) +
 			flt(self.hour_rate_consumable) + flt(self.hour_rate_rent))
-		frappe.db.set(self, 'hour_rate', flt(self.hour_rate_labour) + flt(self.total_variable_cost))
 
 		self.update_bom_operation()
 
@@ -41,8 +40,8 @@
 						(%s between start_time and end_time))
 				""", (self.name, d.name, d.start_time, d.end_time, d.start_time, d.end_time, d.start_time))
 
-		if existing:
-			frappe.throw(_("Row #{0}: Timings conflicts with row {1}").format(d.idx, comma_and(existing)), OverlapError)
+			if existing:
+				frappe.throw(_("Row #{0}: Timings conflicts with row {1}").format(d.idx, comma_and(existing)), OverlapError)
 
 @frappe.whitelist()
 def get_default_holiday_list():
diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index 07cfdbf..4997ede 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -80,7 +80,6 @@
 erpnext.patches.v4_2.default_website_style
 erpnext.patches.v4_2.set_company_country
 erpnext.patches.v4_2.update_sales_order_invoice_field_name
-erpnext.patches.v4_2.cost_of_production_cycle
 erpnext.patches.v4_2.seprate_manufacture_and_repack
 execute:frappe.delete_doc("Report", "Warehouse-Wise Stock Balance")
 execute:frappe.delete_doc("DocType", "Purchase Request")
diff --git a/erpnext/patches/v4_2/cost_of_production_cycle.py b/erpnext/patches/v4_2/cost_of_production_cycle.py
deleted file mode 100644
index 26f0fca..0000000
--- a/erpnext/patches/v4_2/cost_of_production_cycle.py
+++ /dev/null
@@ -1,9 +0,0 @@
-# Copyright (c) 2013, Web Notes Technologies Pvt. Ltd. and Contributors
-# License: GNU General Public License v3. See license.txt
-
-from __future__ import unicode_literals
-import frappe
-
-def execute():
-	frappe.reload_doc("manufacturing", "doctype", "bom")
-	frappe.db.sql("""update tabBOM set total_variable_cost = total_cost""")
\ No newline at end of file
diff --git a/erpnext/patches/v5_0/capacity_planning.py b/erpnext/patches/v5_0/capacity_planning.py
index ce96435..291fc5c 100644
--- a/erpnext/patches/v5_0/capacity_planning.py
+++ b/erpnext/patches/v5_0/capacity_planning.py
@@ -4,20 +4,5 @@
 import frappe
 
 def execute():
-	for dt in ["workstation", "bom", "bom_operation"]:
-		frappe.reload_doc("manufacturing", "doctype", dt)
-
-	frappe.db.sql("update `tabWorkstation` set fixed_cost = fixed_cycle_cost, total_variable_cost = overhead")
-
-	frappe.db.sql("update `tabBOM Operation` set fixed_cost = fixed_cycle_cost")
-
-	for d in frappe.db.sql("select name from `tabBOM` where docstatus < 2"):
-		try:
-			bom = frappe.get_doc('BOM', d[0])
-			if bom.docstatus == 1:
-				bom.ignore_validate_update_after_submit = True
-				bom.calculate_cost()
-			bom.save()
-		except:
-			print "error", frappe.get_traceback()
-			pass
+	frappe.reload_doc("stock", "doctype", "stock_entry")
+	frappe.db.sql("update tabBOM set additional_operating_cost = total_fixed_cost")
diff --git a/erpnext/projects/doctype/time_log/time_log.js b/erpnext/projects/doctype/time_log/time_log.js
index e255843..b23b3ea 100644
--- a/erpnext/projects/doctype/time_log/time_log.js
+++ b/erpnext/projects/doctype/time_log/time_log.js
@@ -14,7 +14,7 @@
 	var is_manufacturing = frm.doc.time_log_for=="Manufacturing" ? true : false;
 	frm.toggle_reqd("production_order", is_manufacturing);
 	frm.toggle_reqd("operation", is_manufacturing);
-	frm.toggle_reqd("operation_status", is_manufacturing);
+	frm.toggle_reqd("completed_qty", is_manufacturing);
 });
 
 // set to time if hours is updated
diff --git a/erpnext/projects/doctype/time_log/time_log.json b/erpnext/projects/doctype/time_log/time_log.json
index 3b27ab8..343a697 100644
--- a/erpnext/projects/doctype/time_log/time_log.json
+++ b/erpnext/projects/doctype/time_log/time_log.json
@@ -116,11 +116,10 @@
    "read_only": 1
   }, 
   {
-   "default": "Work in Progress", 
-   "fieldname": "operation_status", 
-   "fieldtype": "Select", 
-   "label": "Operation Status", 
-   "options": "\nWork in Progress\nCompleted", 
+   "description": "Operation completed for how many finished goods?", 
+   "fieldname": "completed_qty", 
+   "fieldtype": "Float", 
+   "label": "Completed Qty", 
    "permlevel": 0, 
    "precision": ""
   }, 
@@ -200,7 +199,7 @@
  "icon": "icon-time", 
  "idx": 1, 
  "is_submittable": 1, 
- "modified": "2014-12-19 14:20:41.381152", 
+ "modified": "2014-12-22 15:22:00.664972", 
  "modified_by": "Administrator", 
  "module": "Projects", 
  "name": "Time Log", 
diff --git a/erpnext/projects/doctype/time_log/time_log.py b/erpnext/projects/doctype/time_log/time_log.py
index 541154a..5225743 100644
--- a/erpnext/projects/doctype/time_log/time_log.py
+++ b/erpnext/projects/doctype/time_log/time_log.py
@@ -23,7 +23,6 @@
 		self.validate_time_log_for()
 		self.check_workstation_timings()
 		self.validate_production_order()
-		self.validate_operation_status()
 
 	def on_submit(self):
 		self.update_production_order()
@@ -77,7 +76,7 @@
 
 	def validate_time_log_for(self):
 		if self.time_log_for == "Project":
-			for fld in ["production_order", "operation", "workstation", "operation_status"]:
+			for fld in ["production_order", "operation", "workstation", "completed_qty"]:
 				self.set(fld, None)
 
 	def check_workstation_timings(self):
@@ -92,33 +91,25 @@
 			if frappe.db.get_value("Production Order", self.production_order, "docstatus") != 1 :
 				frappe.throw(_("You can make a time log only against a submitted production order"), NotSubmittedError)
 
-	def validate_operation_status(self):
-		if self.time_log_for=="Manufacturing" and self.production_order and self.operation:
-			if self.operation_status == "Work in Progress":
-				latest_time_log = self.get_latest_time_log()
-				if latest_time_log and latest_time_log[0].operation_status == "Completed":
-					frappe.throw("Operation is already completed via Time Log {}".format(latest_time_log[0].name))
-
 	def update_production_order(self):
 		"""Updates `start_date`, `end_date`, `status` for operation in Production Order."""
 
 		if self.time_log_for=="Manufacturing" and self.operation:
+			operation = self.operation.split('. ',1)
+
 			dates = self.get_operation_start_end_time()
+			tl = self.get_all_time_logs()
 
-			latest_time_log = self.get_latest_time_log()
-			op_status = latest_time_log[0].operation_status if latest_time_log else "Pending"
-
-			actual_op_time = self.get_actual_op_time()
-			d = self.operation.split('. ',1)
 
 			frappe.db.sql("""update `tabProduction Order Operation`
-				set actual_start_time = %s, actual_end_time = %s, status = %s, actual_operation_time = %s
+				set actual_start_time = %s, actual_end_time = %s, completed_qty = %s, actual_operation_time = %s
 				where parent=%s and idx=%s and operation = %s""",
-				(dates.start_date, dates.end_date, op_status,
-					actual_op_time, self.production_order, d[0], d[1]))
+				(dates.start_date, dates.end_date, tl.completed_qty,
+					tl.hours, self.production_order, operation[0], operation[1]))
 
 			pro_order = frappe.get_doc("Production Order", self.production_order)
 			pro_order.ignore_validate_update_after_submit = True
+			pro_order.update_operation_status()
 			pro_order.calculate_operating_cost()
 			pro_order.save()
 
@@ -128,17 +119,13 @@
 				where production_order = %s and operation = %s and docstatus=1""",
 				(self.production_order, self.operation), as_dict=1)[0]
 
-	def get_actual_op_time(self):
+	def get_all_time_logs(self):
 		"""Returns 'Actual Operating Time'. """
-		actual_time = frappe.db.sql("""select sum(hours*60) as time_diff from
-			`tabTime Log` where production_order = %s and operation = %s and docstatus=1""",
-			(self.production_order, self.operation))
-		return actual_time[0][0] if actual_time else 0
-
-	def get_latest_time_log(self):
-		return frappe.db.sql("""select name, operation_status from `tabTime Log`
-			where production_order=%s and operation=%s and docstatus=1
-			order by to_time desc limit 1""", (self.production_order, self.operation), as_dict=1)
+		return frappe.db.sql("""select
+			sum(hours*60) as hours, sum(ifnull(completed_qty, 0)) as completed_qty
+			from `tabTime Log`
+			where production_order = %s and operation = %s and docstatus=1""",
+			(self.production_order, self.operation), as_dict=1)[0]
 
 @frappe.whitelist()
 def get_workstation(production_order, operation):
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.js b/erpnext/stock/doctype/stock_entry/stock_entry.js
index d961b40..b5bd455 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.js
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.js
@@ -461,8 +461,6 @@
 cur_frm.fields_dict.supplier.get_query = function(doc, cdt, cdn) {
 	return { query: "erpnext.controllers.queries.supplier_query" }
 }
-cur_frm.add_fetch('production_order', 'total_fixed_cost', 'total_fixed_cost');
-cur_frm.add_fetch('bom_no', 'total_fixed_cost', 'total_fixed_cost');
 
 cur_frm.cscript.company = function(doc, cdt, cdn) {
 	erpnext.get_fiscal_year(doc.company, doc.posting_date);
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.json b/erpnext/stock/doctype/stock_entry/stock_entry.json
index 8cbfbef..8630d03 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.json
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.json
@@ -299,9 +299,11 @@
   }, 
   {
    "depends_on": "eval:inList([\"Manufacture\", \"Repack\"], doc.purpose)", 
-   "fieldname": "total_fixed_cost", 
-   "fieldtype": "Float", 
-   "label": "Total Fixed Cost", 
+   "fieldname": "additional_operating_cost", 
+   "fieldtype": "Currency", 
+   "label": "Additional Operating Cost", 
+   "no_copy": 1, 
+   "options": "Company:company:default_currency", 
    "permlevel": 0, 
    "read_only": 0
   }, 
@@ -585,7 +587,7 @@
  "is_submittable": 1, 
  "issingle": 0, 
  "max_attachments": 0, 
- "modified": "2014-10-03 14:55:44.916658", 
+ "modified": "2014-12-23 15:03:42.963697", 
  "modified_by": "Administrator", 
  "module": "Stock", 
  "name": "Stock Entry", 
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index a9a670d..cb21867 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -171,10 +171,20 @@
 			if not self.production_order:
 				frappe.throw(_("Production order number is mandatory for stock entry purpose manufacture"))
 			# check for double entry
+			self.check_if_operations_completed()
 			self.check_duplicate_entry_for_production_order()
 		elif self.purpose != "Material Transfer":
 			self.production_order = None
 
+	def check_if_operations_completed(self):
+		prod_order = frappe.get_doc("Production Order", self.production_order)
+		if prod_order.actual_operating_cost:
+			for d in prod_order.get("production_order_operations"):
+				total_completed_qty = flt(self.fg_completed_qty) + flt(prod_order.produced_qty)
+				if total_completed_qty > flt(d.completed_qty):
+					frappe.throw(_("Row #{0}: Operation {1} is not completed for {2} qty of finished goods in Production Order # {3}. Please update operation status via Time Logs")
+						.format(d.idx, d.operation, total_completed_qty, self.production_order))
+
 	def check_duplicate_entry_for_production_order(self):
 		other_ste = [t[0] for t in frappe.db.get_values("Stock Entry",  {
 			"production_order": self.production_order,
@@ -258,14 +268,28 @@
 			for d in self.get("mtn_details"):
 				if d.bom_no or (d.t_warehouse and number_of_fg_items == 1):
 					if not flt(d.incoming_rate) or force:
-						operation_cost_per_unit = 0
-						if d.bom_no:
-							bom = frappe.db.get_value("BOM", d.bom_no, ["operating_cost", "quantity"], as_dict=1)
-							operation_cost_per_unit = flt(bom.operating_cost) / flt(bom.quantity)
-						d.incoming_rate = operation_cost_per_unit + (raw_material_cost + flt(self.total_fixed_cost)) / flt(d.transfer_qty)
+						operation_cost_per_unit = self.get_operation_cost_per_unit(d.bom_no, d.qty)
+						d.incoming_rate = operation_cost_per_unit + (raw_material_cost / flt(d.transfer_qty))
 					d.amount = flt(d.transfer_qty) * flt(d.incoming_rate)
 					break
 
+	def get_operation_cost_per_unit(self, bom_no, qty):
+		operation_cost_per_unit = 0
+
+		if self.production_order:
+			pro_order = frappe.get_doc("Production Order", self.production_order)
+			for d in pro_order.get("production_order_operations"):
+				if flt(d.completed_qty):
+					operation_cost_per_unit += flt(d.actual_operating_cost) / flt(d.completed_qty)
+				else:
+					operation_cost_per_unit += flt(d.planned_operating_cost) / flt(self.qty)
+
+		if not operation_cost_per_unit and bom_no:
+			bom = frappe.db.get_value("BOM", bom_no, ["operating_cost", "quantity"], as_dict=1)
+			operation_cost_per_unit = flt(bom.operating_cost) / flt(bom.quantity)
+
+		return operation_cost_per_unit + flt(self.additional_operating_cost) / flt(qty)
+
 	def get_incoming_rate(self, args):
 		incoming_rate = 0
 		if self.purpose == "Sales Return":
@@ -643,10 +667,12 @@
 
 @frappe.whitelist()
 def get_production_order_details(production_order):
-	result = frappe.db.sql("""select bom_no,
-		ifnull(qty, 0) - ifnull(produced_qty, 0) as fg_completed_qty, use_multi_level_bom,
-		wip_warehouse from `tabProduction Order` where name = %s""", production_order, as_dict=1)
-	return result and result[0] or {}
+	res = frappe.db.sql("""select bom_no, use_multi_level_bom, wip_warehouse,
+		ifnull(qty, 0) - ifnull(produced_qty, 0) as fg_completed_qty,
+		(infull(additional_operating_cost, 0) / qty)*(ifnull(qty, 0) - ifnull(produced_qty, 0)) as additional_operating_cost
+		from `tabProduction Order` where name = %s""", production_order, as_dict=1)
+
+	return res and res[0] or {}
 
 def query_sales_return_doc(doctype, txt, searchfield, start, page_len, filters):
 	conditions = ""
diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index 7caf062..cc539f6 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -918,7 +918,7 @@
 			"production_order": production_order.name,
 			"bom_no": bom_no,
 			"fg_completed_qty": "1",
-			"total_fixed_cost": 1000
+			"additional_operating_cost": 1000
 		})
 		stock_entry.get_items()
 
diff --git a/erpnext/stock/report/item_prices/item_prices.py b/erpnext/stock/report/item_prices/item_prices.py
index 2b413fd..bd885b9 100644
--- a/erpnext/stock/report/item_prices/item_prices.py
+++ b/erpnext/stock/report/item_prices/item_prices.py
@@ -115,7 +115,7 @@
 
 	item_bom_map = {}
 
-	for b in frappe.db.sql("""select item, (total_variable_cost/quantity) as bom_rate
+	for b in frappe.db.sql("""select item, (total_cost/quantity) as bom_rate
 		from `tabBOM` where is_active=1 and is_default=1""", as_dict=1):
 			item_bom_map.setdefault(b.item, flt(b.bom_rate))