Product Cost Calculation Module |
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Offering full visibility on corporate cost structures
Improved calculations, more competitive pricing
Organizations strive to keep their cost under control
to ensure their economic well beings. Organizations
implementing cost controls are better placed to react
rapidly and effectively to changes in the marketplace.
Understanding and controlling costs efficiently is an
area of growing concern, requiring functional
management mechanisms that work in harmony with
each other.
The CANIAS ERP Product Cost Calculation Module
helps in understanding and managing estimated,
ongoing, and real costs associated with products. In
product development process spanning design stage to
sales, the CANIAS ERP Product Cost Calculation
Module manages critical cost factors and performs
necessary evaluations and adjustments. The system
also facilitates optimal analysis of production costs
associated with multiple parameters and related processing.
Many aspects, one calculation
Unlimited number of parameters can be defined for
product cost table, which allows computations using
factors such as planned production run quantity,
prices, bills of material and exchange rates. Calculation
of formulas and linking of parameters with formulas
are possible, along with recording of program codes
and algorithms, enabling flexible cost calculations.
Several types of calculation templates are available, with the help of parameterization of such factors as
activity types, cost components, and general expense
ratios. Calculations may be executed for a complete
product or for a single component. Alternative
calculations may also be performed and results may be
compared for costs.
As part of the cost calculation process, changes in
prices, bills of material, activity types and currencies are
taken into consideration. Results are saved in
customer-specific database fields.
As an extension of product cost calculation functionality,
the bid cost calculation feature allows calculation of
sales prices using overall production costs, bonuses,
discounts and mark-downs, and further allows the user
to store the results for reference.
Offering full visibility on business costs
The CANIAS ERP Product Cost Calculation Module
displays results in detail, and using a user-friendly
format. Calculations may be performed at a single level
of detail, on levels of detail specified by customer or
across all levels of a product assembly.
In addition to presenting general calculations in the form
of tables, user is provided with data on overall
expenses, detailed position information, cost share of
by-products and fixed and variable costs for further
analysis. User has the option of specifying individual or batch calculation as part of the net-change feature (for
modified components only). The CANIAS ERP system
has a variant configurator that allows products to be
managed per variable attributes (size, color, type etc).
The Product Cost Calculation Module integrates this
functionality and also considers these variables while
determining production costs. After product has been
configured and bill of materials components and
routing steps are identified, further calculations can be
performed based on these identifications.
For all activity types, cost centers are identified, and
unit cost data (both fixed and variable) is provided;
accordingly, all stages of production are evaluated
based on the current feedback that is received.
Evaluations are performed after current unit cost
values are calculated. The Product Cost Calculation
Module is able to perform all valid evaluations as a
result of its advanced integration with the Cost
Accounting Module, including Cost Types, Cost Centers
and Cost Unit analysis features.
Estimated cost calculations are performed based on
records created for planning (based on bill of materials
and routing information). On the other hand, real cost
calculations are associated with absolute data such as
actual quantity of material used, and the production
time realized for the designated activity types.
Furthermore, specialized costs such as those incurred
during contract manufacturing activities, are reflected
to real costs after receiving feedback from the CANIAS
ERP Production Management module.
Explicit comparisons between estimated costs and
realized costs are possible. For sustained differences
between estimated costs and realized costs, realized
production cost data may be recorded as the starting
point of the next phase of the estimated cost
calculation process.
Keeping estimated and realized costs in line
The CANIAS ERP Product Cost Calculation Module
is comprised of features that are critical in achieving
an integrated cost control for the enterprise. The
module supplies product cost data that is necessary
for the sales function and for the strategic guidance of the organization. Businesses can continuously optimize
their operations by attempting to bridge together
estimated and realized costs.
Comparisons provided within the CANIAS ERP Product
Cost Calculation Module for estimated costs, ongoing
production costs and realized costs allows such
continuous optimization to be achieved. With CANIAS
Cost Accounting, all costs can be transparently
calculated and evaluated.
Integrated cost control, improved profitability
Unrecognized costs result in loss of organizational
resources and adversely affects business growth
prospects. Getting cost factors under control will help in
achieving improved profitability. The Product Cost
Calculation Module, together with the Cost Accounting
module, facilitates accurate cost analysis and control,
and is an indispensable tool in ensuring an
organization's economic well being.
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- Calculations for estimated, ongoing and realized costs
- Individual calculations, batch and net change calculations
- Full cost or direct cost calculation, or overall production costs
- Version control
- Calculations to desired level of semi products within the bill of material
- Open, free-format calculation chart
- Independent parameters:
- Overall production costs
- Activity types
- Cost factors
- Price areas
- Material types
- Free formula calculation
- Ability to specify fields to be used for calculations
- Ability to specify algorithms to be used for calculations
- Date controlled:
- Bill of material
- Activity types
- Ability to use currencies per selected date
- Ability to compare between calculation alternatives
- Calculations based on variants
- Wide choice of analysis and statistics
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