So far, according to the characteristics of resource consumption and the proportion of the product to the cost of computing that people generally fall into two categories: one is the calculation of product cost, and the other is the calculation of operating costs. This article discusses the product cost calculation.
The product cost calculation methods, according to adapt the scope and objectives of management can be divided into two categories: one is full-cost method; the other is changes in cost. In the full cost method there are varieties of the category method, batch method, fractional step method such as the major product cost calculation method; in the main category of variable costing is standard costing.
ERP uses a standard cost system, its cost is mainly reflected in the ERP changes in the cost of computing ideas, methods, specific applications with the traditional methods of product costing much different.
Breakthrough is relative to the old-fashioned, traditional purposes. Therefore, it is necessary first to calculate the cost of traditional methods of product characteristics to be briefly discussed, then the cost of ERP system in the calculation of the breakthrough ideas.
First, the characteristics of full-cost method
Standard costing system and the ERP compared to our current full-cost method to calculate the cost of the following features:
1, the cost divided by economic use, cost of direct materials, direct labor costs and manufacturing costs of three parts (as shown in Figure 1-2), not the manufacturing costs further divided into fixed manufacturing costs and changes in manufacturing costs, so the cost of classification product cost is not conducive to study the motives; Based on this, full-cost method which can not correctly calculate the product of the profit, can not reveal the volume of business, costs, profits dependencies among, of course, let alone cost control, profit forecasts and product portfolio in policy-making;
2, the cost of classification by economic use is based on full cost accounting basis, such accounting has three characteristics: First, all the cost elements are basically accounted for the actual cost (sub-step where you can plan recorded at cost and need to adjust the accounting back end of the actual cost); second is to require accurate accounting, can not be used approximation, assuming that such practices; the third is under the full cost of the project cost to make a clear definition, can not enter the product costs during the cost. However, in actual operations (including many textbooks, practice exam books) are not required strict compliance with cost accounting, to some or all of the cost charged directly to cost of the product during the period, Zhe Yang has been on the product cost structure resulting chaos Fenxi control difficult to enforce;
3, full-cost method to calculate the complicated process, especially the end of the month relate to cost sharing, cost reduction and other accounting matters will have a significant workload for the accounting department. Either manually or using computerized accounting software environment can not change this basic fact;
4, human or subjective factors in the calculation over doping affect the accuracy of accounting; business links in the cost of institutionalization and standardization is difficult to put into concrete operational level, the implementation of each accounting officer;
5, on the one hand is difficult to accurately measure the cost of products (cost information may be distorted, the accounting end of the period can be, and is an average data, which may be in different months is not the same) and the other is the cost accounting system (including the cost of finished products), accounting system, the cost in the product data relied on strong;
6, once more the object will be difficult to adapt accounting, financial cost of the "classification" is to deal with this situation;
7, the financial cost of materials is based on class management, such as main materials, auxiliary materials, parts ... can not be achieved outside the itemized costs of materials management;
8, various calculation methods, application of complex and difficult to master; and cost under different methods of data difficult to compare;
...
Second, the characteristics of variable costing
Whether the standard cost ERP system or the traditional manual environment, the standard cost system are all variable cost method of accounting in specific practical application. Read this part of the contents of the products for ERP cost pave the way for change in-depth understanding.
(1) the cost of their habit of classification (fixed cost, variable cost and mixed cost). Classified by economic use and costs in product costs constitute the difference is: fixed manufacturing costs are not included;
(2) The standard cost is a "fixed costs, associated costs," excluding the cost of the system cost elements Guiji arbitrariness;
(3) Each cost element must be further divided into the number of standard and price standards;
(4) standards must be based on the fixed cost of each specific enterprise technology, management, production status to develop reasonable and timely maintenance. Development is the so-called reasonable time quota values obtained, it is necessary motion analysis, operations research to determine the need to rely on scientific and reasonable standards of volume guarantee;
(5) standard costing system simplifies the process of calculating the cost and complexity;
(6), including standard cost development, cost variance analysis, cost differences between the three aspects of treatment.
Third, ERP system in the calculation of the cost of the breakthrough ideas
Since the introduction of BOM structure, makes the ERP implementation process of the standard cost system in the calculation of thinking, and show a unique personality:
1, ERP's standard cost is the cost of the ERP system exists in the form BOM, BOM-cost concepts exist only in the cost of ERP systems;
2, the cost of computing can process BOM BOM, product BOM, BOM coordinated operation designed to do even realize the information integration and sharing;
3, ERP standard cost calculation highly automated, from the cost of data acquisition, roll added to the accounting documents of students in Chengdu without manual intervention;
4, ERP calculated standard cost structure is clear, the products continue to occur during processing costs (materials, labor, manufacturing overhead) are the identity of their accumulated cost stored in the products area, even if the production of finished products or semi-finished storage, these costs or in their respective regions as access to inventory costs, without superimposed mixed;
5, ERP work widely used standard cost centers, cost center, profit center definition, very easy to implement responsibility accounting;
6, ERP data standard cost flexibility with enterprise budget data complement each other, thereby strengthening the basis of uniform standards in the management of the enterprise;
7, to facilitate cost-back, with the rapid computation of a computer program can be traced back to any level according to the product mix changes;
8, ERP reporting mechanism through the daily production of by-production order costing, as opposed to domestic accounting is still widely used to document the end of a one-time carry-over, cost-sharing "calculated" that the average cost of more real.
ERP system in the calculation of the cost of the breakthrough
Adhering to the application characteristics of management accounting, ERP standard costing system in the methods of traditional methods to break the "either-or" constraints, the practical application of enhanced flexibility, initiative.
First, the basic standard system and the current standard cost system in the ERP system integration
The cost of the traditional standard applicable to the frequency of and amendments can be divided into the basic standard cost (BasicStandardcost) and the current standard cost (CurrentStandardcost). The former is a product to reach normal production levels in the first year of the actual cost, this cost standard has been established, as long as no major changes in the basic conditions of production, generally unchanged for years. Use the basic standard cost and actual cost of all of comparing trends reflect changes in costs; which means their prices should occur during application, efficiency and production capacity to the extent of the anticipated use of standard cost, when various factors change should be timely amendment. Thus, the current standard cost to actual cost can be used to evaluate the current period, but also for inventory and sales cost.
Thus, both methods have their advantages and disadvantages. Such as changes according to actual situation is not always conducive to a longer period of trend analysis, the contrary is not conducive to routine control. In the traditional approach had to take a compromise approach, the result is none of both good management. ERP software in the sound inventory and cost data to support the standard, it is easy to solve this problem: For example, we can back up the existing inventory at the beginning and the standard cost data (basic standard cost), the year the cost of each accounting period to update the standard, so that as far as possible the actual situation (the current standard cost) to help evaluate the efficiency and cost control, at the end and then back up the current standard cost data in accordance with the basic standard cost index to adjust the data, the data can be compared with the year as a trend analysis.
Moreover, if the standard cost can be in the ERP system is very easy to maintain a normal standard cost, standard cost system ideal to carry out the simulation under a variety of cost models and analysis.
Second, the basic accounting methods to achieve cost-accounting methods and supporting the integration of
China's cost accounting method of the product costing method is divided into two basic methods and aids. Basic methods include varieties of law, and sub-step batch method; secondary methods include the taxonomies, the fixed cost, standard costing and variable costing. With the budget, control and decision-making in enterprise production and operation activities, the importance of continuously improved, based on internal changes Chengben, standard costs, fixed costs Dengfu Zhu calculation method of the information generated needs are more urgent and intense. This occurred since the conflict: on the one hand, external financial cost management requires full-cost method to calculate the cost of products, the main varieties of method of calculation methods, and sub-step batch method; the other hand, internal management requires cost variable cost method, the main method of calculating the standard cost method. Ever since, the company's accounting department was caught in the middle: only increase the resources of large enterprises set up two bodies, set up two accounts; and can only give up a small business. We reach customers, many businesses have told us the financial director of the Advisory Sub-step method, the variety in the standard cost system for ERP implementation possibilities. Well, there are no best of both worlds solution?
Should say yes, this would introduce two modifications in the approach:
1, the fixed manufacturing overhead cost drivers bringing them as far as possible changes in manufacturing costs, for the manufacture of hard and reasonable costs directly Guiji can profit and loss. Since the full cost method that changes in cost and in fact became a thing!
This is the most simple, direct approach. And regardless of the results from the calculation, or processing of Reasons of view are credible and tenable. We know that full-cost method and cost method changes the core, the essence of the difference is the treatment of fixed manufacturing costs, and now if we can eliminate this difference, of course, only need to do a corporate account management can meet the different needs of internal and external ; Another point is that the depreciation of fixed assets for production use, such as treatment for this approach should be more reasonable. Depreciation of production equipment in the past been classified as fixed manufacturing costs, such as by the outside world affect the output of two very different month, then this difference reflects the product's unit cost difference will be enormous. In fact, this cost difference will not be accepted by the market. Therefore, it is recommended to share some of the current products (determined by scale) to change the form included in the cost of products, rather than the share of part (associated with the period) directly through profit and loss.
2, can cost in the accounting period, the manufacturing cost by changes in the requirements of decomposition, in the accounting system and then adjust the back end. Traditional work, the accounting department can not be such a large amount of cost accounting, and in the ERP manner, using a standard cost system, for each element are provided for the cost of materials, labor costs, changes in manufacturing rates and fixed manufacturing rates, in fact in accordance with changes in the cost of the project cost method set to make this practice possible.
ERP cost of system the breakthrough in the practical application
If the ERP system in the practical application of the cost can not be a breakthrough, then the above ideas and methods described in the breakthrough will be meaningless. The practical application is a large and complex topic, different enterprises, and even different applications based on the problems people encounter is different, therefore recommended that the implementation of ERP cost management to prepare the introduction of formal management consulting business. Here, only a brief overview of several common problems.
1, standard cost variance analysis
Standard cost and actual cost is the difference between the cost difference. As the cost of the two factors by the volume and price structure, so the cost difference is also the number of differences and price differences. Cost variance analysis is the analysis of differences between the nature of the specific composition.
1, the direct material cost calculation and analysis of variance
Direct material price difference = (actual price - standard price) X actual quantity
Differences in the number of direct materials = (actual quantity - standard quantity) X standard price
Direct material cost difference = direct material + direct material price difference between the number of
= Actual cost of materials - standard cost of materials
In general, the direct material price differences ranging from the procurement department; difference between the amount of material directly from production or interim storage and transportation departments.
2, the direct labor cost calculation and analysis of variance
Direct labor cost difference between the number of direct labor and direct labor price differentials constitute the two reflects the difference between the algebra and the actual cost of direct labor and direct labor cost difference between the standard.
Differences in wage rate = (real wage rate - the standard wage rate) X actual hours
Direct labor efficiency difference = (actual hours - standard hours) X standard wage rate
Direct labor cost difference = difference + direct labor wage rate difference between the efficiency of direct labor
= Actual cost of labor - the cost of labor standards
Direct labor cost difference should be mainly due to the formation of labor and personnel departments and production departments.
3, manufacturing cost calculation and analysis of variance
Manufacturing costs by their nature, can be divided into fixity differences and changes in manufacturing costs between the cost of manufacturing two. In their daily work, these two differences were also calculated and analyzed.
(1) changes in the cost of manufacture of calculation and analysis of variance
Changes in the cost of manufacturing cost difference = (actual distribution rate - the standard allocation rate) X actual hours / machine
Changes in manufacturing cost efficiency difference = (actual hours / machine - standard working hours / machine) X standard distribution rate
Changes in the cost of manufacturing variability difference = difference + change in manufacturing costs manufacturing overhead cost efficiency between
= Change in the actual cost of manufacturing costs - change in the standard cost of manufacturing costs
Differences in changes in the cost of manufacturing is to distinguish the changes in the cost of manufacturing differences and changes in cost efficiency between manufacturing cost of manufacturing costs of the changes affect the size and direction of difference. Changes in the cost of manufacturing cost difference is mainly affected by changes in the cost of manufacturing the impact of conservation and waste; changes in the efficiency of manufacturing cost is mainly affected by differences in working hours change.
(2) fixity Cost Variances Calculation and Analysis
Fixity fixity manufacturing overhead cost difference is the amount of actual expenditure and the difference between standard expenditures, which typically includes between fixity overhead cost, fixed manufacturing costs and capacity utilization efficiency between the three different parts.
Fixity cost difference between manufacturing costs = actual distribution rate X actual hours - standard hours of work budget allocation ratio X
= Actual cost fixity manufacturing costs - the number of its budget
Fixity manufacturing cost efficiency difference = (actual hours - standard hours) X standard distribution rate
Capacity utilization differences between the actual hours and hours budget for the difference between the official calculated as follows:
Capacity utilization difference = budget hours X standard distribution rate - actual hours X standard distribution rate
= (Estimated hours - actual hours) X standard distribution rate
Fixity manufacturing cost is mainly affected by differences in waste management staff wage rates and tax rates, depreciation rate, fixed manufacturing cost efficiency between the different production and capacity utilization is mainly affected by the impact of the existing level of capacity utilization.
Second, the cost difference between the standard treatment
Standard treatment cost differences are mainly two ways: directly through profit and loss sharing or
1, if the difference in result is smaller, usually carried over directly to the product cost of sales accounts directly through profit and loss.
This method uses the premise that the company has good control of the means of cost differences, such as Kuayue affairs reduction target of close to zero inventory, and achieve sales of the month ... month output. In short, amortization and between the product and sharing issues in the products less the value of involving the lower, more stable business conditions to the implementation of this approach more;
2, if the size difference between larger and the rate was not stable, then the reasons need to be analyzed, while the positive amendments to the standard cost data optimization, enhanced cost control system in order to narrow the differences; for this adaptation period in accordance with our recommendations financial accounting system, according to the provisions of the standard cost-sharing by different adjustments for the actual cost.
3, sub-carry-over in the ERP system implementation
Sub-sub-step is the most significant carry-over method is also widely used daily. In fact, the daily experience of client questions the majority of such problems.
BOM (BOM) applications, according to materials at the cost of project standards (horizontal), according to BOM hierarchy can achieve bottom-up projects at cost plus roll (vertical). So since the products in the ongoing processing costs (materials, labor, manufacturing overhead) are the identity of their accumulation in the products stored in the cost area, not confusion. This is the first; the other is the standard cost of ERP support costs and more processing steps, so steps can be produced (usually in units of the production plant) as the object of cost accounting.
4, the standard cost accounting in the accounts and hedge causes the difference
ERP system uses transaction-driven approach (Transactiondriven) to calculate the cost of the product. Subject to pre-set to automatically transfer the appropriate address login account. However, cost accounting standard setting in the irrational, not to maintain real-time, internal control systems, and therefore the difference between many accounts created.
For example, due to the sudden appearance of new materials, making the standard cost center data failed to enter. At this time, the material has been handled through purchase orders and the impact of the inventory storage volume. Differences reflected in the procurement chain order price and standard cost price (0) between the purchase price, if the situation was the month in time, the standard center of the input data, will form the standard cost variances, and it coincides with the time of purchase the purchase price difference the formation of the hedge;
If the situation does not timely detection of the month, then these differences can be material inventory in the future by modifying the standard cost center data, the products of inputs and outputs changes when the standard cost, plus the cost of rolling (CROV / CROL) and other methods to achieve hedge. Of course, the more difference was found later, during the period across the greater will be the more trouble dealing with them.
5, the cost of the amendment and maintenance of BOM
BOM cost is the core of ERP systems. The current standard cost system to control the cost of business objectives and run the most basic requirements of manufacturing companies. Therefore, enterprises must be based on the market, processing, production conditions, technical level in a timely manner on the revised cost BOM.
We know, ERP standard cost calculation the cost of adopting a bottom-up roll increases, in accordance with the operation of different ways to change the law and the net can be divided into two kinds of rebirth and became law. To batch operations (generally a single processing batch work was carried out according to report, send and receive materials at a cost of roll when added) manner inevitably increase the cost of rolling there is a certain lag, and for delineation of the incidence of the cost accounting period caused confusion. Cost accounting practice in the enterprise, depending on the seriousness of the shortcomings of each BOM item price, the number of factors, changes in frequency and frequency BOM tree structure changes. Therefore, the cost of frequent the local bowling plus (net change) supported by periodic (the period taking into account the precise allocation of costs for the recommended maximum of no more than one month) of rebirth became law should be the preferred approach. The principle is: the cost increase is intended to roll as much as possible to eliminate some of the costs that may occur between subjects.
These costs from the ERP product ideas, methods and applications, the breakthrough for a simple analysis and elaboration of expected industry colleagues, academics to be corrected!