Design And Implement Of Cost Management Accounting In Manufacturing Enterprise Resource Planning (ERP)

The ERP is a systematical management terrace which is based on the information technology, using of advanced management thought of the modern business enterprise and completely gathering all resource information of business enterprise. The ERP provide decision , plan, control and valuation to the accomplishment for business enterprise. Orders can be used as cost objects for permanent or temporary jobs.Intemal orders in the system describe individual jobs within a controlling area. Orders support action-oriented planning,monitoring.and allocation of costs. You can use internal orders to : Monitor internal jobs settled to cost centers (overhead orders) Monitor internal jobs settled to fixed assets (investment orders) Offsetting posting of accrued costs calculated in control (accrual orders) Display the cost controlling parts of Sales and Distributioncustomer orders and revenues that do not affect the corebusiness of the company (orders with vevenues) The management of internal orders represents the most detailed operational level of cost and activity accounting and canbe used for the following: You can analyze costs differently than in Cost CenterAccounting for cost management You can compare in-house production and externalprocurement costs for decision-makingInternal orders can be used for collecting monthly credits that result from the accrual calculation. Organizational expenses are often allocated differently in Financial Accounting (Fl) than in Controlling (CO).For example ,an expense entered into Fl in one accounting period may cover a whole year. In order to avoid cost fluctuations in Cost CenterAccounting .irregularly occurring expense should be allocated to the relevant time periods and cost centers.This even distribution of an irregular expense is termed accrued cost. You can use the percentage method or the target actual method to calculate accrued costs.Master Data Maintenance The master data defines the attributes of an order.indluding organizational assignments. Similar to cost centers.you assign overhead orders to a company code and a controlling area. To create business area blalances in Financial Accounting ,you also need to define a business area in the order master record. To Transfer values that were posted to orders to a profit center.you enter the profit center in the order master data. All actual postings to the overhead order are transferred automatically to the profit center. If required,you can also transfer plan values to profit center planning. You can only create internal orders with reference to an order type. You must assign each order to an order type , which then transfers certain parameters to the order. Order types define the purpose of the order and the way it is processed in the system The order type may also be used to group together orders with similar characteristics.The order type determines.for example: Whether commitments managemengts is active Whether revenue postings are allowed Order status management Characteristics (required.optional.and so on) of masterrecord fields Whether the order number is internally or externally assignedand the number range General parameters for settlement ,planning,and budgeting Status Management for Orders An order has its own life cycle.which begins when you create it and ends after you close it .During this time.different things happen to an ordr.for example.costs are planned,posted.and settled. Status managemengt informs you that a particular phase in the order life cycle has been reached and determines wheich business transactions are valid for an order at any given time. If the status settings in the standard system are not detailed enough.you can create user-defined status indicators for further subdivisions.Order Planning and budgeting During order planning, you enter costs.activities and business processes which you expect to incur during the life cycle of an order.With order planning ,you can compare plan and actual costs.and carry out differentiated variance analysis. You administrate the approved cost framework for an order or an order group using Budget Management.The budget is the approved cost structure for an order and differs grom the cost plan in that it is binding .Management uses me budget to approve expected costs for an order over a given timeframe.You can enter the order budget manually or copy budget information from any plan version. Cost planning is performed mostly on orders with long durations. Orders which only exist for a very short period,such as orders for unexpected small repairs,are not usually planned. Internal order planning provides three different levels of cost planning: Overall Planning is the simplest way of planning costs for orders.You do not need the cost element to estimate overall and annual values for an order. When more detailed information is available for an internal order.you can use primary costs,activity inputs and revenues in manal planning.In automatic planning, you can charge the order with overheads.distribution costs.periodic reposting costs, assessment costs.indirect activity allocation costs.process costs.and settlement costs.Ifthe order is a plan-ntegrated order, you perform a plan credit using periodic reposting or settlement. Budget Management for order The system recognizes the following budget types: The original budget is the budget originally allocated. Budget ypdates for orders include supplements and returns and are used when unforeseen events and additional requirements force a correction to the original budget The current budget includes the original budget and all budget updates. In addition to the budget update functions.you can make changes to the original budget. You can freeze the original budget using status management. You accomplish this by creating a user statusprohibits the Budgeting business transaction ,but does allow supplements and returns.When you create or update your budget, the system documents the transaction in a line item. You can display the budget line items from the budget screen. You can enter text for budget line items to provide supporting information for the budget transaction. Multinational business locations may repuire you to perform budgeting in different currencies. You can choose different currencies to enter your budget. All budget items are converted and saved artomaticllly in the controlling area currency and the object currency.In Customizing, you define how availability control will operate for your ordertypes: Is avalibility control active For which transactions will availability control apply. What are the tolerance limits. What action will be initiated when tolerance limits are exceeded. Should certain types of costs be exempted from availability control.The united software development process is a gather which convert the user requirement to the activity required by the software system. It is a commonly used process frame and it can be used by every kind of software system, application area, organization and project scale. The united software development process is based on component, which is a software system constructed by software component using specific defined interface. The united software development process use united model language to draw the blue print of the software system, the characteristic can be presented by three...