PRODUCTION COSTING
The production costing module is a parameter driven costing system and is
extremely flexible and powerful. It allows full drill down viewing of costs at each of the various
inventory points in your production cycle.
The system can work in either an average costing methodology (for predominantly purchased products) or
a standard costing methodology. Costs can be updated at fixed intervals (yearly, half yearly, etc) or
can be updated on an ad-hoc basis using a flow-through system, whereby cost changes in raw materials
reflect in a cost change of products that use them.
Cost changes are recorded in a history file so that historical cost reporting can be performed using
“as at” costs. Cost changes can also be used to update sales prices.
The system includes many reports and tools and provides a number of what-if analysis tools, whereby a
second set of costs can be generated based on proposed cost changes.
Further to this, “future costing” is possible where a set of costs can be generated based on known cost
structure changes and rolled into the live costs at a specific point in time. Reporting using the future
costs can provide information on the impact to the bottom line so that business decisions regarding product
lines, or pricing structures can be made in advance of the cost change date.
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TEXTILE MANUFACTURING SYSTEM
