Cost Management Modules

With this module, users can perform a comprehensive evaluation and analysis. Moreover, the module allows the users to list and analyze possible errors in the batch calculation. In addition, the results of the various calculations can be compared to each other by cross control on the module. By being successfully integrated with the rest of the modules in the system, the module guarantees the use of centrally managed data in each calculation.

The graph shows the interaction between the module and other modules in the system.

COST PARAMETERS

The master data required for the calculation derived from the Bill of Materials and Routing Management modules. Necessary components and quantities are taken from the Bill of Material module. Operational details such as the time spent on production are taken from the Routing Management module. It is also possible to determine the prices of various components and semi-products to be included in the calculation. For the raw materials purchased, the moving average price or the final purchase price may be used, while the production costs for the semi-products produced internally can be taken into account.

For activities entered in the Routing Management module, such as machinery, labor or preparation time, an activity unit cost record for the relevant cost center can be defined. This definition can be transferred from previous month’s cost distribution results, through integration with the Cost Centers Accounting module. Fixed and variable rates in activity unit cost records provide flexible pricing. The desired number of calculation schemes can be created in the module. In each scheme, which activity records and the prices of the components will be taken as a basis for the calculation can be determined separately. In addition, it is possible to define whether additional cost records such as general production expenses will be taken into account and which amount will be taken into consideration. By using ‘Schema Variables’ depending on these schemes, variables can be determined dynamically in line with the specific properties of the materials and an additional cost can be created for the calculated costs.

In addition, a multi-level tree breakdown and the calculation of the calculation result as a new standard price in the material master data can also be set para-metrically on the module.

CALCULATION METHODS

In the Standard Cost Management module, in addition to the calculation of a specific product, a batch calculation covering multiple materials can be carried out. In the batch calculation, the materials selected based on certain parameters are taken into consideration in preliminary conditions. The calculation can also be started from other modules. For example, when creating a proposal in the Sales Management module, a bid cost can be calculated, or project costs can be calculated in the Project Management module. Similarly, in the Budget Management module, the standard cost calculation can also be made collectively for the materials included in the budget.

EVALUATIONS AND ANALYSIS

The Standard Cost Management module provides the user with comprehensive evaluation and analysis. Thus, in a batch calculation, lists can be created where possible errors can be seen and analyzed. In addition, the results of the different calculations can be compared with each other by cross control. Calculation views can also be defined on the module to highlight specific issues within the calculation.

INTEGRATION

The successful integration of the Standard Cost Management module with all modules in the system guarantees the use of centrally managed data in each calculation. The module is integrated with modules such as Base Data Management, Bill of Materials Management, Routing Management, Sales Management, Project Management, Production Management, Budget Management, and Cost Centers Accounting.

FEATURES OVERVIEW

• Single calculation and batch calculation
• History records
• Simultaneous management of different versions
• Multi-level calculation for multi-level bill of materials
• Fixed and variable rates for activity unit costs
• Defining an unlimited number of configurable calculation schemes.
• Effective management of costs on schema rows using schema variables
• Calculations with user-defined formulas
• Calculating the bill of materials, activity unit costs and exchange rates on a date determined by the user
• Calculation by the variant
• Determining product origin with cost distribution
• Ability to calculate costs according to different accounting standards
• Cost comparison reports

The amount of raw materials is provided by the Inventory Management module, the activity amounts are provided by the Cost Centers Accounting module, while the external operation invoices are provided by the Invoice Verification module. In addition to providing data for the internal reports, the cost values are transferred to accounting by integration with the Financial Accounting module. The successful integration feature also provides a practical calculation of the cost results in the period closures.

COST REPORTS
The module offers a wide range of reporting options to users. Some of these reports are used to check the accuracy and consistency of data from other modules and to calculate production costs without error. In this way, the determination of the changes that need to be completed before the production cost calculation can be made easily.

In addition, using the data generated as a result of the calculation of production cost; ‘Material Consumption Analysis’, ‘Activity Cost Analysis’, ‘Production Order Cost Analysis’, ‘Product, Scrap and External Cost Analysis’ can be done.

These reports with the detailed information are easy to understand with their simple design and allow the user to navigate freely.

COST CALCULATION
In the Production Cost Management module, all amounts calculated taking into account the cost elements based on the production orders are reflected in the inventory receipts of the production orders to which they belong. The costs of products that differ in the production process in a period can be calculated in a realistic way through this method.

Also, by taking into consideration the operation structure of production orders, the costs of the inventory receipts of items such as by-products, products to be reworked, and semi-products can be calculated.

The cost of production orders which are open during the cost calculation is transferred to the next period in accordance with the reality.

COST ACCOUNTING
Results in Production Cost Management module are automatically transferred to accounting. Reflections of product and expense accounts are generated, and the cost results are accounted. Thus, closing of cost accounts without adding new accounting documents can be checked.

MULTIPLE ACCOUNTING STANDARDS
In the Production Cost Management module, product costs can be calculated separately for each different accounting standards such as TMS, IFRS, USGAAP and TFRS. In this way, cost results can be reported according to different accounting standards and these results can be easily compared with each other.

REAL-TIME COST
With the real-time cost calculation feature of the module, the costs of raw materials, semi-products or inventory movements of the products are calculated instantaneously, and the calculated amounts are accounted over the standard or walking weighted average cost.

COST SAVING ANALYSIS
Sales dispatch price, sales invoice price, standard cost, actual cost and distribution scheme and additional costs distributed to sales items can be reported in ERP system. As a result of this process, profit-loss analysis can be done by reporting the deviation rate.

INTEGRATION
The Production Cost Management module enables the creation and reporting of cost results without the need for data transfer due to integration with the following modules.

• Inventory Management
• Cost Centers Accounting
• Production Management
• Invoice Verification

Considering that the cost results should be given at a limited time in period closures, this advanced integration saves users a lot of time. The results can also be transferred to the Financial Accounting module.

FEATURES OVERVIEW

• Integration that does not allow duplicates
• By-product, rework material and semi-product cost calculation
• Production cost calculation
• Raw material consumption costs calculation
• Activity costs calculation
• Calculation of external operation amounts
• Periodic calculation of product costs based on production order
• Transfer of non-reflected amounts to the inventory receipt (Work-In-Progress cost)
• A wide range of reporting options
• Detailed production order cost analysis
• Material consumption analysis
• Contract cost analysis
• Analysis of overhead costs
• Product and fire cost analysis
• Analysis of cost items
• Planned and realized cost distribution analysis
• Standard – actual cost comparison
• Cost calculation with multiple accounting standards
• Transfer of cost results to cost accounting accounts
• Real-time cost calculations for semi-finished products or products
• Consistency control across the ERP system
• Control of records included in the cost account
• Controlling the consistency of inventory, production and accounting data

In addition, this module, which allows the definition of a wide range of cost holders, calculates the cost holders that occur during the period. Thus, the actual costs and planned costs can be compared. Cost transfers can be made between cost centers by using distribution keys defined in the module. Users can determine activity unit costs for standard product cost calculations for the relevant month and for the coming months based on the expense distribution data. It is also possible to make a variety of reporting through the module, such as the cost distribution table, annual comparison or plan-actual comparison.

COST TYPES

In the system, the expense accounts in the Financial Accounting module also serve as cost types. It is possible to define these as fixed or variable costs and also to summarize and form cost groups here. In addition, an account or account type can be defined as subject to a cost center. The purpose of this is to ensure that all relevant Financial Accounting records are transferred to the cost centers.

COST OBJECTS

Cost Centers Accounting module allows for the definition of a wide range of cost objects (e.g. production orders or projects). Cost objects that form during the period can be controlled by a simultaneous calculation; The actual costs and the planned costs can be compared through the final cost calculation.

COST CENTERS

The cost center base data that form the basis of the module can be freely defined without being limited to a certain number of cost centers. Defined cost centers are associated with cost types (Cost Accounts) in Financial Accounting module, and cost objects (Production order operations or project steps) in Production Management and Project Management modules. Cost Centers Accounting module works in an integrated manner with other modules through these associations. It is also possible to define a cost center hierarchy by setting an upper cost center for each cost center.

COST DISTRIBUTION

General Ledger records and, if required, stock movements can be grouped as primary costs for cost entries. By identifying a distribution key, the costs in auxiliary cost centers can be distributed to the main cost centers where the production takes place. Production confirmations, resulting costs, or fixed rates (e.g. square meters, number of employees, etc.) can be used as distribution criteria. Cost transfers can be made between cost centers by using defined distribution keys, and then the cost distributions can be compared.

Using the cost allocation data, the unit costs for new activity (e.g. labor time or electricity consumption) can be determined based on future product cost calculations. In addition, when calculating the unit cost of activities, the ideal runtimes defined in the route operations can be used instead of the actual production confirmations. Costs of parts that do not operate when working capacities are not fully filled can be accounted with Cost Centers Accounting module.

In addition, various reporting options are available for the data generated in the module, such as the cost distribution table, annual comparison or planned-actual comparison.

INTEGRATION

With the high level of integration through the ERP system, the registration of data related to the Cost Centers Accounting module is performed correspondingly with the document records in Financial Accounting, Fixed Asset Management, Sales Management, Inventory Management and Production Management modules. In this way, cost calculation can be performed without the need for duplicate records and extra data transfer.

In addition to the actual costs, the Cost Centers Accounting module can work with the planned costs as well. Planned costs can also be used in Standard Cost Management and Budget Management modules.

In addition to standard reports, it is also possible to create custom reports for customers with the Business Intelligence module.

FEATURES OVERVIEW

• Planned and actual cost comparison
• Cost centers management
• Hierarchy of cost centers
• Distribution switches
• Variable and fixed cost definitions
• Activity unit cost calculation
• Inoperative part expense recognition
• Various delivery methods
• Distribution according to production quantities
• Distribution by direct expense rates
• Constant coefficient distribution
• Comprehensive reports
• Raw accounting and production data control
• Planned and actual cost distribution analysis
• Cost center cost flows
• Data consistency control