Inventory Accounting with Material Ledger
Inventory Accounting With Material Ledger
actual costing
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Actual Costing
Actual Costing
Multi-level Periodic Material Prices
Actual Costing
Material Ledger
Transparency
of Value Chain
Multi-level Periodic Material Prices
Inventory Valuation
Parallel Currencies
Valuation with Historic Exchange Rates
Parallel Valuation
Transfer prices
Group
Legal Profit Center
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Mutli-Level Actual Costing
Production
Multi-Level Actual Costing allows Inventory valuation with actual periodic material price Roll-up of price differences from raw materials to finished materials
Production
External Procurement
External Procurement
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Integration of Actual Costing
Integration of Multi-Level
Actual Costing
Profitability Analysis
Contribution Margins
Product Cost Planning Cost Center Accounting
Actual Prices of Activities and Business Processes Standard Prices & Cost Component Split
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Actual Costing and Profitability Analysis
Actual values in Profitability Analysis
Contribution Margin Accounting Cost of sales split into cost components Plan/Actual Variance analysis
Sales Quantity: Revenues: 1,000 pc 10,000 US$ Plan Raw Materials Labor variable Machine variable Logistic Processes Material Overheads Contribution Margin I Labor fix Machine fix Contribution Margin II
Actual 45,000 5,000 4,500 7,000 5,500 33,000 10,000 7,000 16,000
Var. % 5,000 -1,000 - 500 3,000 - 500 6,000 0 0 6,000
Var. Abs. 10 % - 25 % - 13 % 30% - 10 % 22 % 0% 0% 60 %
50,000 4,000 4,000 10,000 5,000 27,000 10,000 7,000 10,000
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Actual Costing and Cost Center Accounting /ABC
Direct settlement to materials:
Actual activity prices
Business Processes
Actual ./. Plan
Actual costs of business processes
Plan
Production
Standard Price
Material
Settlement
Cost Center Activities
Actual ./. Plan
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Actual Costing and Product Cost Planning
Product Cost Planning
PP Master Data
Actual Costing with Cost Components
Same cost component structure as in planning No Cost Estimates necessary for Actual Costing Optional: Primary cost component split
Multi-Level Actual Costing
Material Movements
Routing
BOM
Actual Quantity Structure
Cost Estimate
Standard Price with Mat Proc Lab OH
Price Determination
Variance Analysis
Periodic Unit Price with Mat Proc Lab OH
Cost Component Split
Cost Component Split
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Actual Cost Component Split
The Actual Cost Component Split is a strategic tool for Sourcing Decisions based on procurement alternatives Analyzing the actual value added in each production level
Category Beginning Inventory Receipts Purchase Order Trading Inc Best Price Ltd Production Prod. Version1 ... Cumulative Inventory Consumption Ending Inventory Qty
100 900 300 200 100 500 500 100 1,000 600 400
Value Material Labor Machine Process
8,400 72,600 26,000 18,000 8,000 38,500 38,500 8,100 81,000 48,600 32,400 4,500 1,500 50,000 8,500 26,000 18,000 8,000 20,000 7,000 20,000 7,000 4,000 1,500 54,500 10,000 32,700 6,000 21,800 4,000 1,150 6,200
OH
Price
84,00 81,00 87,00 90,00 80,00 77,00 77,00 81,00 81,00 81,00 81,00
700 550 4,800 3,100
5,000 5,000 1,200 7,350 4,410 2,940
4,000 4,000 800 5,500 3,300 2,200
2,500 2,500 600 3,650 2,190 1,460
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Material Price Analysis
Price Analysis for selected Materials
Huge number of monetary and quantity key-figures Multiple sorting and summarization functions Easy-to-customize to fit personal needs Direct drill-down tools to detailed views and documents Easy error finding Material
PC 500 Pentium PC 600 Pentium PC 330 Pentium Monitor 17 Digital Camera xms Digital Camera xms PC Pentium 200
Plant London London Frankfurt London Frankfurt London Frankfurt
Std.Price Act. Price Var.abs Var. % 2,500 2,900 400 16 % 3,500 3,920 420 12 % 1,500 1,635 135 9% 400 432 32 8% 750 805 55 7,5 % 950 1020 70 7,4 % 800 855 55 7%
...
Total
... ...
... ...
... ...
... ...
... ...
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Material Price Analysis (2)
Price analysis for single Materials
Price history Procurement controlling Plausibility checks, and more Category Quantity PrelValue PriceDif Price Beginning Inventory 100 1,000 160 11,60 Receipts 900 9,000 2,340 12,60 Purchase Order 300 3,000 1,500 15,00 Trading Inc 200 2,000 1,200 16,00 Best Price Ltd 100 1,000 300 13,00 Production 500 5,000 500 11,00 Prod. Version1 500 5,000 500 11,00 ... 100 1,000 340 13,40 Cumulative Inventory 1,000 10,000 2,500 12,50 Consumption 600 6,000 1,500 12,50 Ending Inventory 400 4,000 1,000 12,50
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Actual Costing in the Workplace
Cost Accounting Cost Accounting Manager Manager Cost Accountant Cost Accountant Inventory Inventory Accountant Accountant
Inventory Inventory Cost Estimator Cost Estimator Accountant Accountant Sales Business Sales Business
Analyst Analyst Business Business Unit Analyst Unit Analyst
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Inventory Accountant: Areas of Responsability
Procurement Planning
ial te r s Ma ice Pr
Actual Costing
Qu ant & V ities alu es
Stock
Balance Sheet Valuation Inventory Counting
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Period E nd Activitie s
Actual Costing in the Workplace
Actual periodic Material Price Multi-Level Roll-up of Price Variances Integration with Profitability Analysis Integration with ABC and Cost Center Accounting Integration with Product Cost Planning Represented in Workplace Inventory Accountant
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