Controlling in Infor LN

The Controlling functionality is specifically designed to provide operational information to management. This information is used for better decision-making, improving business procedures in organizations and for formulating strategic and operational planning.

In Infor LN, the Controlling process comprises of:

  • Financial Budgeting System (FBS)
  • Cost Accounting (CAT)

The Financial Budgeting System (FBS) functionality is used for registering, handling, and monitoring all budget amounts and quantities necessary for planning by ledger account or dimension or a combination of both.

The Cost Accounting (CAT) functionality is used to:

  • manage multiple performance dependencies between cost centers and other dimension types in order to calculate the correct allocation rate.
  • review the costs that are generated at the cost-type level in a manufacturing center. The costs can be energy, water, building, maintenance, R & D, and so on.

Planning Cycle

A generic planning cycle occurs in different phases in many manufacturing companies. The planning cycle includes these plans:

  • Sales plan: The planning cycle starts with a sales plan. The sales plan includes the overall number of products that a company expects to sell in a particular planning horizon.
  • Manufacturing plan: A manufacturing plan, is the overall manufacturing-output level required to meet the sales targets and is developed based on the Sales plan.
  • Resource plan: The resource plan is used as a capacity check if the material and personnel or machine utilization requirements of the manufacturing plan can be achieved.
  • Production plan: The production plan describes in detail the resources that are required during the different stages of production. The resource plan provides the available capacity of resources, such as personnel and/or machines, and the production plan is based on this input.
  • Financial (flexible) budget: The primary objective of the planning cycle is to budget the overhead costs of the various cost centers. The volume of budgeted hours for each work center and the performance unit/cost driver is derived from the production planning.