The Study On The Cost Management Based On The SAP System

In the modern society,the environment of production and business has undergone profound changes,and the cost level has greatly impacted on the survival of a large enterprise.It has been a necessary need to enhance cost control by changing our concept and studying of existing cost-management methods with the combination of modern management concepts and advanced computer technology.SAP system,as currently the world's largest ERP software,have been used in more than 80%of Fortune 500 companies.Research and study of the financial management functions in the SAP system,will greatly help the finance analysts to lead the stronger management roles in their daily jobs,and the realization of the value of the finance department to a certain extent.My studies show that how to use the ERP system to build up a platform for the cost management in a manufacturing company through setting up a set of modules,which should be included,but not limited to:the cost center accounting and the profit center accounting,the application of internal order,profitability analysis,standard cost system,cost variance analysis, budgeting,and so on.My studies especially focus on the standard cost system in SAP,and conduct a detailed study and discussion on the manufacturing cost variance analysis,which includes the following steps based on the actual practice:standard cost setup,the actual cost absorption and the variance analysis.The thesis also points out,based on the ERP system integration features,the cost variance can be broken down level by level,to unite not only the cost control and the performance evaluation in a manufacturing company,but also the costing result and the sustaining improvement,which changes the fact that cost control in the past can not be fulfilled in different departments,instead,makes the cost control will be the same goal of the all departments in the whole company.These bring some references for the product cost control in the manufacturing company.The actual practice has proved that the above mentioned methods in manufacturing enterprises can greatly help improve the quality of the costing data and the accuracy of accounting information,and the costing analyst will have more time to do the cost control on the business to provide more accurate and reliable data,by optimizing the management to create more value.