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Materials Cost Posting

Material cost posting determines the consumption of raw, auxiliary and operational materials, and posts the inventory changes of semi-finished and finished products. Valuation ensures that objects are created for all costing and relevant production processes. These objects form the basis for posting costs.

Valuation is the central link between production and accounting. Different valuation methods are available to valuate production processes. A valuation method consists of a valuation type for the stock receipt and the stock issue.

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Materials Cost Posting in abas ERP

Benefits

Precise data:
The entire ERP system contains exact price quantity and value history, as well as precise determinations of stock value. Exact process-related values in final costing, as well as accurate direct material and production costs in cost object accounting ensure consistent precision in data.
Evaluate purchasing:
Value-based mapping of materials is provided in purchasing to aid in your decision making. Information about uncalculated products is provided in purchasing and sales.
Financial visibility:
Cost posting suggestions are provided, and posting results are provided from drill-down capabilities to document level.
Inventory valuation:
Valuate your inventory using to a variety of procedures and methods.
Current prices:
Pricing data is updated and calculated automatically, allowing for your information to be up to date. Information about your stock is updated as it progresses from its raw material form to the finished product.
Get control of your warehouse:
Management of work-in-progress inventory is free of discrepancies, with real-time valuation and automatic posting of inventory changes and completion confirmation times.
Keep up to date at all times:
Real-time valuation and automatic posting of inventory changes and completion confirmation times.
Handling of consignment warehouse locations
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Valuation types

Stock receipt:

  • Actual (transaction price)

  • Standard (planned price)

  • Zero valuation

Stock issue:

  • Priced at receipt

  • LIFO (last in, first out)

  • FIFO (first in, first out)

  • Mixed price

  • Warehouse group mixed price

Valuation of products at transaction price

Finished products can be valued at actual cost when they are received in the warehouse from production. Direct material and production costs can be posted in a differentiated manner. In addition, overhead costs are adopted in the cost entries for the change in stock.

The posting of overheads allows you to display WIP and finished product stock levels (including overheads) valued at the manufacturing costs. If actual cost is used for finished products, WIP will be managed by the ERP system automatically without differentiation. Externally procured parts can also be valued at the transaction price.

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WIP list




Work in process (WIP) stock

abas determines the usage of raw, auxiliary and operational materials, and assemblies of finished products and WIP. Stock changes that result from the consumption can be posted.

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  • Quantity revaluation

    Quantity revaluation is used for the subsequent editing of valuation prices. The entire value history is maintained, meaning that the cost originator and reason for the price change remain fully traceable.

    A quantity revaluation can be used to increase or decrease valuations of stock levels or products after stocktaking.

    Quantity revaluation
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Flexible selection with cost entry suggestion

The cost entry suggestion can be used to select valuations resulting from stock movement journal entries or completion confirmation journal entries based on various criteria. The selected posting documents and their total are displayed in a table.

Revaluation of additive costs through cost allocation

Causal relationships can be created in abas ERP, independent of time or a direct (technical) process reference. This requires all receipts and issues to be linked. Using cost allocations, additional costs such as freight or customs can be subsequently assigned to a process. The revaluation function forwards these additional costs to the affected processes later on, so they are available for evaluations such as the final costing.

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Useful evaluations

In the interests of improving visibility and clarity, a number of useful evaluations list the valuation and posting results for material and production cost postings:

  • With the costs of a work order info system, you can determine progress and exact costs of a key date for individual work orders.

  • You can use the WIP on key date function to determine the stock level of the WIP on a specific key date.

  • The stock value on key date info system determines the stock value on a specific key date. Based on the valuations, the stock value can be determined based on various criteria.

  • The valuation reference info system can be used to evaluate material value using a number of selection criteria.

  • The production activity info system evaluates the production costs per work center, cost center or cost object for a period.

Purchasing and sales packing slips, for which an invoice will be created at a later date, can be posted to an interim account. For this account, an info system will provide a notification for all delivered products that have not been invoiced yet for a key date.
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Subcontracting and material cost posting

The subcontracting value is recorded when the receipt invoice is posted. The service will also be posted to a subcontractor account here. Additionally, the subcontracting value (including provided materials) will be posted as a stock receipt in the stock account. On withdrawal from subcontracting, the stock issue value is posted under work in progress (WIP).

Mapping of material provided to vendors

The values of material provided to vendors are displayed when posting the incoming invoice. Costs of services associated with the materials provided can be posted on a subcontracting account. An additional posting displays the value of the purchased product plus the material value of the ordered product, as the stock increases to the product stock account.

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Contact

The information contained here is strictly confidential and will only be used by abas Software AG and the abas software partners in accordance with our data protection policy.

Wir versichern Ihnen, dass die Angaben streng vertraulich und nur von der abas Software AG sowie den abas Software Partnern genutzt werden gemäß unserer Datenschutzerklärung.