canias4.0 ERP Module

Production Cost Managemet

caniasERP Production Cost Management (PRC) module is used to calculate the costs of manufactured products. In this module, the production cost value consists of three main components: the cost of raw materials, the cost of the expenses entered into the cost centers, the amount of the invoices paid for the external operations. 

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 caniasERP 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 caniasERP system
  • Control of records included in the cost account
  • Controlling the consistency of inventory, production and accounting data

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