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Compiere Training Compiere Training
CostingCosting
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Costing2 C O N F I D E N T I A L
Agenda
Objectives & InfrastructureMethodsInventory Costing› Landed Costs
Project CostingManufacturing
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Costing3 C O N F I D E N T I A L
Costing is easy …
If things happen “at once in sequence”› PO created› Material Receipt› Purchase Invoice
• No Additional Costs– E.g. reight! Custo"s! ...
• No #t$ %iscount– E.g. &u$ ' pa$ ( ) get *
• No additional %iscount later – E.g. *+ on previous #uarter,-ear
› hen transact , sell it
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Costing( C O N F I D E N T I A L
Objectives
Mutipe !parae" Costing Methods› Costing Method in Accounting /che"a
• E.g. IO 0or Manage"ent Accounting /che"a 1 Average 0orLegal Reporting Accounting /che"a
› A&ilit$ to vie "ultiple Costing Methods
#upport of $standard% cost Methods› i de0ined 4traditional /td Costing5 or PO costs
#upport of !rea" $actua% cost Methods
#upport of !utipe" cost types
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Costing* C O N F I D E N T I A L
Costing Methods #uary
'er “actua costing” iseading› O0ten re0errers to PO rather then Invoice
Co(#)etc* #ources› /tandard Costing
› 6eighted Average PO Costing› 6eighted Average Invoice Costing› io 4Invoice5 Costing› Lio 4Invoice5 Costing
› Last PO Costs› Last Invoice Costs› 47ser %e0ined58
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Costing9 C O N F I D E N T I A L
#tandard Costing
+efine)Maintain #tandard !Current" Costs› I0 not de0ined derive 0ro" Inv,PO 0or 0irst ransaction› uture /tandard Costs and cost update.
,eceipt & Co(# at #tandard Cost
Cacuated› PP: 4/tandard Cost 1 PO costs5› IP: 4PO costs 1 Invoice costs5
• I0 no PO eists 4/tandard costs 1 Invoice costs5
Manuay update Current and -uture Costs› Process to calculate uture costs› Process to cop$ uture Costs to Current Costs
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Average PO
.eighted Average Purchase Order Costing› Assu"es that $ou ala$s use Purchase Orders
,eceipt at PO CostsCo(# at Average PO Costs› 6eighted Average o0 Purchase Order #t$,Price
• /toc? Ea @ >?B PO= * Ea @ 2? Average PO Cost >3.33
• I0 PO not eists! uses Average PO Cost
1 no re)evaluation
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Average Invoice
.eighted Average Invoice Costing,eceipt at Invoice Price› No Invoice e"porar$= PO price or Average Costs
Co(# at Average Inv Costs› 6eighted Average o0 Invoice #t$,Price
• /toc? Ea @ >? B Inv= * Ea @ 2? Average Inv Cost >3.33
› Average Inv Cost Adust"ent henPrice,#t$ Adust"ent• Optional correction o0 CoF/
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-i-o Invoice Costing
-irst/In/-irst/Out of Invoice 0ty)Price› 7sing HueueJ o0 Invoice #t$,Price
,eceipt at Invoice Price› No Invoice e"porar$= PO price or 6eighted Inv Costs
Co(# at -i-o Costs› io Cost Adust"ent hen Price,#t$ Adust"ent
• Optional correction o0 CoF/
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1i-o Invoice Costing
#ae as -i-o2 just reverse “queue” echanis
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.hat Costing Method 3
#tandard Costing› Allos to anal$Ke cost di00erences eas$› Maintenance e00ort reasona&le
Actua Costing› Is H0ashiona&leJ! &ut reuires co"ple "onitoring› Cost di00erences and trends hard to spot› No Maintenance ) &ut high "onitoring e00ort› orgs /uggestion
•
7se onl$! i0 $ou have a 0ull$ trained cost accountantCosting Method is independent froInventory 4auation› Co"piere allos $ou to use Actual Costs 0or valuation
ith /tandard Costing
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Cost +ata 5ierarchy
Cost 'ype› Material Cost Ele"ents 4usuall$ calculated5
• Costing Methods 4all used B de0ined5– On Costing Level 4Client 1 Org 1 Lot,/erNo5
›
Other Cost Ele"ents 4"anuall$ entered5• Overhead! etc.– On Costing Level 4Client 1 Org 1 Lot,/erNo5
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Cost +ata 67ape
Cost 'ype› Material Cost Ele"ents
• /tandard Cost >2• PO Average >?• Invoice Average >>• io G
› Other Cost Ele"ents• andling >• /torage >?+
Costs› /tandard Costs >2› PO Average >? B > >> B >?+ >2.>› Invoice Average >> B > >2 B >?+ >3.2
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Cost 'ype
Aternative Costing #cenariosor Accounting #chea› Current› istor$
› uture! .#eect Cost 'ype per Accounting #chea
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Cost 6eents
+efine any 8uber of Cost 6eentsCost 6eent 'ype› Material
• Costing Method› urden 4Material Overhead5
› Overhead› Resource› Outside Processing
Autoaticay Cacuated› Material Costs 0or Costing Method used
• Not /tandard Costing
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Cost 6eents
Cost 6ntered per Product› Enter on Costing Level
• 4Client 1 OrganiKation 1 Lot,/erNo5– Not per 6arehouse Q 6arehouses o0 OrganiKation
›
Enter Current Cost• Cost per > 7OM› ) or ) Percent 4&ased on > 7OM cost5
• Ea"ple= Current Cost >?– /torage >?+ >>– /torage >?+ B andling 2?+ >3
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Costing +ata Cacuated
+eterined by Materia Cost 6eent› Auto"aticall$ Created,:alidated
• %e0ine Costing Method– Accounting /che"a– Product Categor$ Accounting
› Manuall$ Created,Entered• As "an$ as $ou ant 4Average PO! Lio! 5
– Processing ' /torage Overhead
Costing 1eve
› enant 1 OrganiKation 46arehouse5 1 Lot,/erNo• Lot,/erNo Product Attri&ute
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Costing #etup
Accounting #chea› Costing Method
• /tandard 1 Average 1 etc.
› Cost $pe•
%e0ault 1 uture 1 etc.› Costing Level• enant 1 OrganiKation 1 Lot,/erNo
› Adust Cost o0 Food /old 4CoF/5• Onl$ 0or Invoice Costing Methods 0or HlateJ Invoices
or Landed Costs 1 otherise posted to Cost Adust"entsProduct Category Accounting› Costing Method 4Overrite5› Costing Level 4Overrite5
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PO Cost 6ntry
Purchase Order 1ine› Price he vendor price› Cost Price
• 7sed 0or PO Costs•
Including anticipated 0reight! discounts! ...• I0 e"pt$ or ? Price
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Co(#)etc* Cacuation
+efined on Cient 1eve for › /hip"ent 4CoF/5› Inter)Org Move"ents› HConsu"ing,CreatingJ events
• Inventor$ Count! Internal 7se! ProductionCacuation› ased on Cost Method› Ma$ include optional Cost $pes
• Cost Percentage• uture= i"e,6eight,:olu"e &ased Overhead8• Note= /tandard Cost is all inclusive 4i.e. includes Overhead!
reight! ..5
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Costing2 C O N F I D E N T I A L
Cost Adjustents !9"
: 1anded CostsOn AP Invoice 1ine› /elect Charge 4or even Product5
• E.g. reight! andling! ro
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Costing2 C O N F I D E N T I A L
Cost Adjustents !;"
Accounting› Invoice Line
• Cost Adust"ent 1 A,P– One line per Cost Allocation Line– 7sing allocated Product In0o
• Optionall$ Eplicit Cost Adust"ent
Costing› Create additional Cost %etails
• Cost $pe selected in Allocation•
Product , OrganiKation› Optionall$ rigger CoF/ price adust"ents8• I0 ena&led in Client Level
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Costing2 C O N F I D E N T I A L
#tandard Costing 67ape
9)9 < PO9= 9>6a ? @9>9) < ,eceipt9= 9>6a
9)B < #hipent9= 6a9)9> < PO;= 9>6a ? @9;
9)99 < Invoice9= 9>6a ? @999)9; < ,eceipt;= 9>6a9)9 < #hipent;= D6a9)9E < Invoice;= 9>6a ? @9E9)9 < Invoice9a= @ !9>7>*"
#et #td Cost :F >? fro PO,eceipt= 9> 7 @9> G9>HCo(#= 7 @9> G/:HPP4= 9> 7 @;
Cost= 9> 7 @99 IP4= 9> 7 @9,eceipt= 9> 7 @9> GJ9>:9HCo(#= D 7 @9> G/D:KHCost= 9> 7 @9E IP4= 9> 7 @;IP4= 9> 7 @>*
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Costing2 C O N F I D E N T I A L
.eighted Av Invoice Costing
9)9 < PO9= 9>6a ? @9>9) < ,eceipt9= 9>6a
9)B < #hipent9= 6a9)9> < PO;= 9>6a ? @9;
9)99 < Invoice9= 9>6a ? @99
9)9; < ,eceipt;= 9>6a9)9 < #hipent;= D6a9)9E < Invoice;= 9>6a ? @9E
9)9 < Invoice9a= @ !9>7>*"
/'ep Cost :F @9> fro PO,eceipt= 9> 7 @9> G9>HCo(#9= 7 @9> G/:H/
Cost= 9> 7 @99 :F @99Co(#9 Adj= 7 @9,eceipt= 9> 7 @99 GJ9>:9HCo(#;= D 7 @99 G/D:KHCost= 9> 7 @9E :F @9L!@99J9>9E")9N
Co(#; Adj= D 7 @;Co(#9 Adj= 7 @>*Cost Adj= :F @9*9BL!@99*J9>9E")9NCo(#; Adj= D 7 >*9B
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Costing2 C O N F I D E N T I A L
-i-o Costing 67ape
9)9 < PO9= 9>6a ? @9>9) < ,eceipt9= 9>6a
9)B < #hipent9= 6a9)9> < PO;= 9>6a ? @9;
9)99 < Invoice9= 9>6a ? @99
9)9; < ,eceipt;= 9>6a
9)9 < #hipent;= D6a9)9E < Invoice;= 9>6a ? @9E
9)9 < Invoice9a= @ !9>7>*"
/'ep Cost :F @9> fro PO,eceipt= 9> 7 @9> G9>HCo(#9= 7 @9> G9>/@9>H/
Cost= 9> 7 @99 G@99HCo(#9 Adj= 7 @9,eceipt= 9> 7 @99G@99J9>@99HCo(#;= 7 @99 J 7 @99Cost= 9> 7 @9E G>@99JK@9EH
Co(#; Adj= 7 @G>@99*JK@9EHCo(#9 Adj= 7 >*Co(#; Adj= 7 >*
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Costing2 C O N F I D E N T I A L
Accounting #uary
Inventory 8otInv,eceipt Co(# 67penseJ Other
,eceipt ,eceipt Current Costs
#hipent #hipent Current Costs
Invoice Payabes Invoice At
,I Match ,I Match IP4 ,eversed Origina
PP4
Adjust Payabes Cost Adjustent
Adjust Adjust Adjust +istribution
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Costing2 C O N F I D E N T I A L
Accounting 6ntries !9"
Purchase Order › Encu"&rance 4Co""it"ent5
,eceipt› %R= Inventor$ 4Product Asset5
CR= Not Invoiced Receipt› ased on Current Costs 4not corrected later5
#hipent› %R= CoF/
CR= Inventor$ 4or Proect5› ased on Current Costs
ith the option to adusted later
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Costing2 C O N F I D E N T I A L
Accounting 6ntries !;"
AP Invoice !(enera"› %R= Charge
%R= a 4Credit5%R= Epense%R= Inventor$ Clearing 40or not /ervice5%R= Cost Adust"ents 40or Landed Costs5
CR= Pa$a&lesCR= Pa$a&les 4/ervice5
AP Invoice 67apes› %R= Charge *?
%R= a *CR= Pa$a&les **
› %R= a * 4Landed Cost %istri&ution5%R= Cost Adust"ent 2?%R= Cost Adust"ent 3?
CR= Pa$a&les **› %R= Charge *? 4. Eplicit Cost Adust"ent5%R= a *
CR= Charge *?%R= Cost Adust"ent 2?%R= Cost Adust"ent 3?
CR= Pa$a&les **
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Costing2 C O N F I D E N T I A L
Accounting 6ntries !"
,eceipt < Invoice Match› %R= Not Invoiced Receipts
CR= Inventor$ Clearing%R,CR= IP:
› A"ounts• Not Invoiced Receipts
– Eact Reversal o0 Receipt Current Cost
• Inventor$ Clearing– Eact Invoice A"ount
• Invoice Price %i00erence– Calculated to &alance r
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Costing3 C O N F I D E N T I A L
Accounting 6ntries !E"
PO < Invoice Match› No Accounting Conseuence
PO < ,eceipt Match› %R,CR= PP:
CR,%R= PP: O00set› A"ount= Purchase Price 1 Current Costs
8ote “PP4”› he PP: ' O00set Account are O00 ) alance /heet ,
Inco"e /tate"ent Accounts 4i.e. HCosting AccountsJ5› Onl$ Posted i0 /tandard Costing is selected
• hin
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Costing3 C O N F I D E N T I A L
Costing ,oadap
OM Costing +ata› Product
• OrganiKation 4 6arehouse5– Cost $pe
» Accounting /che"a» Cost Ele"ent» ransactions 4"ulti)currenc$5
› 4%$na"ic5 Cost Rollup• or OM,Product• Optional all,speci0ic OrganiKation• 7sing certain Cost $pes• Converted to selecta&le currenc$
Copy Cost 'ype !deep copy"Cost 6eents based on 4oue2 .eight2 'ie…
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Costing3 C O N F I D E N T I A L
Costing ,oadap
Adjust Co(# / if to be corrected for Price)0tyAdjustents› Creates additional accounting entries 4no overrite5 and
reuires that period is open
Personne Costs› %i00erent Cost $pe 0or di00erent o&s• %irect ourl$,6ee
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Costing ,oadap
Project Costing› or direct Proect Purchase Orders
• 7se PO costs 4not the current costsT5– Or actual Invoice costs
• Cost Adust"ents charged directl$ to Proect• 4Currentl$ not directl$ received5
Manufacturing› raditional /tandard Costing› o &e evaluated
• Ma$&e "ied! e.g.– Purchased Products 1 io– Manu0actured Products 1 /tandard