The canias ERP Standard Cost Calculation (CAL) module calculates the production cost related to a unit of a certain product.
Standard Cost Calculation (CAL) with canias ERP
The basic data to be used in calculation are the data pertaining to bills of materials, routes and service types.
Due to complete integration with the general system, there ia a smooth data interchang between the canias ERP Standard Cost Calculation Module and other modules. The interoperability of canias ERP Standard Cost Calculation Module with other modules is shown schematically in the graph.
Pre-Requisites in Relation to Calculation
The primary data necessary for calculation come from the modules relating to management of bills of materials and routes. Necessary components and quantities are defined in the bill of materials. In Routes and Work Center Management, data such as necessary operations and time spent for production are defined. Furthermore, the pricing for various components and semi-finished product types can be set in the price section. When using moving average price or final purchase price for purchased raw materials, production
costs retrieved from calculation can be taken into account for internally produced semifinished products.
For activities explained in the route, such as machinery, workmanship or lead time, an activity record for each relevant cost center can be defined and, with the help of the indexing feature, more than one activity record can be defined for the same cost center. In addition, constant and variable rates in the activity records enable a flexible pricing.
It is possible to create the required number of calculation diagrams in the canias ERP Standard Cost Calculation module. In each diagram, which activity records and which prices belonging to components will be taken as a basis for calculation are defined separately. In addition, it can also be defined whether additional cost records (e.g. general material and production costs) will be taken into account or not and if so, which amount will be taken account.
Initiation of Calculation
In the canias ERP Standard Cost Calculation module, calculation for a certain product or collective calculation for more than one material, can be executed. In collective calculation, materials selected according to parameters specified in prerequisites are taken into account. The calculation can also be started from other modules. For example, when creating an offer in the canias ERP Sales module, an offer cost or project costs can be calculated in the canias ERP Project Management module as well.
Determination of Parameters for Calculation
Irrespective of the module with which the calculation will be started, various parameters can be determined for calculation. Among these parameters are the calculation schema used or validity date data, price data, activity data, bill of materials and routes. Taking a breakdown of a multi-level bill of materials and writing the result of calculation as a new standard price to material main data can also be parametrically set.
Evaluations and Analyses
The canias ERP Standard Cost Calculation module offers comprehensive evaluation and analysis capability. Therefore, lists can be created to detect and analyze potential errors in a collective calculation (e.g. missing information in material main data or route).
Furthermore, results of different calculations can be compared with each other with a cross-check. In the canias ERP Standard Cost Calculation module, calculation displays may be defined to emphasize certain issues in the scope of calculation.
Connection with other Modules
Integration of the canias ERP Standard Cost Calculation Module with the general solution guarantees use of centrally managed up-to-date data in each calculation initiated. In return, the Standard Cost Calculation module provides information to other modules, such as revaluation prices relating to calculated materials. When a new standard is written on material main data, it provides basic data for stock valuation in the canias ERP Inventory Management module and valuation in financial accounting.