Through product integration, the cost management solution developed by Kingdee can help enterprises to establishthe cost management system which includes cost forecast, accounting, control, analysis, and assessment in production, storage and purchase. Thus, on one hand, the system can facilitate operation control and performance evaluation by the management based on accurate statistical analysis and disclosed cost information. On the other hand, the system contributes to planning, process controlandresult analysis in cost management. The system supports two accounting methods: standard and actual cost accounting
Business Process and Modular Functionalities
The system can analyze historical accounting data of actual production cost by using the moving average method and chronological moving average method. Then the system forecasts production cost and performs difference analysis according to the cost forecast and analysis form. It also provides the function of intelligent setting of pricing decision formulas and units, and then generates pricing decision solutions accordingly. The system presets 36 solutions. According to each solution, decisions for quotation can be made and quotations can be provided.
Actual Cost Management
The system provides the function of accounting of actual production cost. It supports multiple cost accounting methods such as product costing, process costing, batch methods, and classification methods. Additionally, the system can integrate with other systems, collect output and expenses quickly and automatically, and provides flexible expense allocation and wizard cost calculation methods as well as optimized cost calculation reports. For products to which the batch determination method is applied, the system tracks actual production cost, including tracking of expense collection and allocation, and cost calculation results. The system supports cost accounting for scrap, joint-products and by-products. Additionally, the system can generate vouchers for process documents according to the voucher template and transfer them to the G/L
You may apply standard cost management on specified material, specified manufacturing order or manufacturing operation. For purchased material, standard cost is standard purchase price and is maintained in the system manually. For manufactured product, standard cost is the result of a roll-up from standard BOM, standard routing, etc. System can do roll-up automatically so as to help you improve the efficiency of standard cost calculation. To comply with the present Chinese accounting and tax regulation, standard cost can be reverted into actual cost by allocating cost variances that have been booked to P&L to inventory, sales and WIP cost at a lump-sum level.
Operation Cost Management
The solution defines SOs and MOs as direct cost objects, which are different from traditional cost objects. By replacing the department cost accounting mode and introducing the concept of cost centers, the solution supports tracking of the entire production process. This will facilitate multi-dimensional statistical analysis based on SO, MO, cost centers, operations, cost objects, and cost items.
Daily Cost Management
The traditional accounting period is defined as a costing period. In contrast, the solution supports multiple rounds of cost accounting and analysis by the day, week, ten-day, and user-defined period within one accounting period. This will provide timely and accurate cost information flexibly, and enable the corporate management to master cost changes in time.
Cost Analysis and Assessment
Break-even analysis: The system provides two analysis models: break-even point and target profit analysis models. It can calculate data such as sales volume and selling prices when the break-even point or target profits is achieved, and analyze the relations between profits and changes in cost, sales volumeandselling prices.
Comparative analysis of standard and actual cost: The system provides the function of accounting of standard production cost. Based on the comparative analysis of calculated standard and actual cost in terms of the quantity and amount of specific products, the system generates multi-dimensional difference analysis reports for each cost item, which involves differences in the quantity, price, capability, efficiency, and consumption, to strengthen cost control and assessment.
Production cost analysis and assessment: The system provides a large number of analysis reports including analysis reports on product cost composition, cost trendsandmaterial consumption. The purpose is to analyze product cost from different perspectives and perform cost accountability evaluation based on cost centers.
- Karl Mayer
- Cascade Forklift