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Computation of Actual Costs
Infocost provides specialized services for the computation of actual costs for manufactured items in SAP. Our proficiency in SAP Costing and SAP Finance ensures detailed and accurate financial reporting.
To get the actual costing of our manufactured product normally we struggle a lot and even after all the hard work the actual cost is neither explainable nor acceptable by the Finance and Production team. Hence it is very important to get the true actual cost which would be acceptable by Finance and Production team to take necessary actions.
Key Aspects of Actual Cost Calculation
- Data from Production Orders & GL The calculation of actual cost in SAP System would be done as per the bookings in the production orders and balances in the GL Accounts (both quantity and value).
- Multi-level Cost Rollup The Production levels would be used for the purpose of rolling up of the cost from one level to other levels for the actual cost computations.
- Inclusive Material & Fixed Costs GL level material cost and fixed cost would be taken into considerations to calculate the total actual cost – It makes the finance team answerable.
- Production & Consumption Quantities Production quantity and consumption quantity in actuals would be taken into consideration to calculate the acutal cost: – It makes the production team answerable.
- Variance Analysis Finally the actual cost would be compared with the standard cost to get the per unit difference and get the analysis for the same.
We have the readymade solutions for getting the actual cost as explained above. it is a plug and play solutions and can be implemented at any SAP System in a quick time and with a reasonable cost.
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Frequently Asked Questions
Based on the system actual cost the respective consumptions should also be revaluated automatically
The COGS for the finished good also should be revaluated with the new actual cost at the month end
Closing stock valuation at the end of every month should be based on the actual cost.
Cost center accounting
Product cost planning (Standard cost release)
Cost object controlling (Actual cost collections and month end closing)
Actual costing should be activated only for Manufacturing Plants.
RM, PM and other procured material should be maintained with Moving Avg. Price
SFG and FG to be maintained with the Standard Price.
Monthly costing run for all the plants with Actual costing
Additional accounting entries would be posted after the closing of the monthly actual costing run
Any custom solutions if it is listed in the deliverables then it is under the scope of delivery.
Any additional reporting requirements for the actual costing would be out of the Scope of this assignmet,
1. System calculated Actual cost for the Semi finished and Finished Goods
2. Closing inventory valuation with the revised actual cost as calculated by system
3. COGS revaluation with actual cost based on the sales documents.
4. Contribution reports with the revised COGS value.
Project Deliverables:
Business requirement documents (Based on questionnaire by our experts)
Business solution documents
Configuration documents
SIT (System Integration Testing) documents
UAT (User Acceptance Testing) documents
Functional and Technical Specifications
Training Manuals
Step 2. We propose the Solutions and Recommendations based on the discussions. and GAP identifications if any.
Step 3. Once the Solution document is finalized then we will proceed for the realizations phase and Testing
Step 4. User acceptance testing. (UAT)
Next 1 weeks for Configurations + Testing in the Development system
Next 1 weeks for testing in the Quality system + UAT with Business Team.
Next 1 weeks for Final preparation and moving the TR to Production system
Next 1 weeks for running the program in Production system after one month of moving the TR to production system.
Next: Project complete
Support Required:
1. Business and SAP users time required in first 2 weeks for discussion and during the UAT Phase + Preparation
2. Dedicated person from business/SAP side to manage the Project
The value of actual cost as calculated by System will have the detail backup with input and output data in the system itself which will help the auditor to check and get the audit trail.
This will save lot of time and money, and it will add positive impact to the outsiders for the system and book of the company
3. UAT Sign off – 1/3
4. Final completions – 1/3
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