Master Data Setup

The master data setup process for the Controlling functionality within Infor ERP LN.

Note: The information included in this topic covers the complete master data setup for the Controlling functionality. However, you can execute the procedure based on your requirements such as Static Budgeting, Flexible Budgeting, Cost Allocation and Cost Controlling.
  • Defining the parameters:
    • Financial Budgeting System
    • Cost Accounting
    • Finance Company
    • Standard Cost Calculation
    • Item - Costing
    • People

To set up the master data for Controlling, perform these steps:

  1. Access the Financial Budgeting Parameters (tffbs0500m000) session and specify this information:
    Hierarchy
    The default hierarchy that is used in the cost planning of the Financial Budgeting System and in the analysis of the Cost Accounting.
    Home Currency for Controlling
    The home currency to be used as the default. In Financial Budgeting System/Cost Accounting, the data is stored in one home currency.
    Reaction on Changed Performance Budgets
    The option to indicate the impact of change in performance data. Possible values:
    • Change Rates: The performance change only calculates a new rate.
    • Change Variable Amounts: The performance change first updates the variable costs before calculating a new rate
    .
    Note: If a budget is already created and the budget performance data is modified, the rate is automatically recalculated.
    .
    Use Effective Rates
    Select this check box to define effective rates for flexible budgeting. An effective rate is a comparison rate to express the price that you expect from your investments or earn with alternative investments.
    Automatically Rebuild Sublevel for Static Budgets
    Select this check box if the parent ledger accounts and parent dimensions must be calculated immediately when the budget is created.
  2. Access the Cost Accounting Parameters (tfcat0500m000) session and specify this information:
    Cost Accounting System
    The accounting system used to determine the cost rate to charge the cost center or cost object and to calculate deviations.
    • Full Cost Accounting: With full costing, also know as ‘absorption costing’, all direct, fixed, and variable overhead costs are assigned to the (end) product. The fixed costs are expensed when goods or services are sold. Using this method, the following variances can be determined using the flexible controlling process:
      • Fixed Overhead Volume (or Occupation Variance),
      • Efficiency Variance (or Consumption Variance)
      • Political Price Variance (or Over-/Under Coverage)
    • Variable Cost Accounting: Under the variable costing method, fixed manufacturing overhead costs are expensed in the period they incur. Using this method, the following variances can be determined using the flexible controlling process:
      • Efficiency Variance (or Consumption Variance)
      • Political Price Variance (or Over-/Under Coverage)
    Contra Account for Cost Postings in GLD
    Use this contra account in the general ledger as the credit account for actual costs. These credit postings are ignored when you import costs from General Ledger (GLD). Example:

    A company has the policy to periodically allocate additional costs from their sales department to the main cost centers to make sure unexpected sales costs are included in the calculation of their rates and surcharges. These costs, however, must not be included in the General Ledger. Therefore, at the end of the month a journal transaction is created:

    D) Interim allocation expenses €5.000,00

    Department Sales

    CR) Interim allocation expenses €5.000,00

    Department Sales

    For the General Ledger, this transaction has no impact in the balances (neutral). However, the ledger account that is used is also defined as the Contra Account for Cost Postings in GLD in the cost accounting parameters, for the cost allocation, the debit transaction is imported (not the credit one). Therefore this ledger account is used for the cost allocation process of the Department Sales.

    Transaction Type for Operating Results
    The transaction type to which the operating results are posted.
    Transaction Type for Allocation Results
    The allocated actual costs are posted using this transaction type, following the Integrate and/or Post Cost Allocation Results (tfcat4211m000 session.
    Dimension Type for Activities
    This dimension type is used to store all activities that are used in activity-based costing.
  3. Access the Finance Company Parameters (tfgld0503m000) session, specify this information:
    Actual Budget
    Select a budget that can be used as the default budget when you compare the actual data and the budgeted figures in the General Ledger. In addition, the actual budget is used as the default in several sessions in the Financial Budget System (FBS) and Cost Accounting (CAT) functionality. All deviations between actual and budgeted data are automatically calculated for this budget.
  4. Access the Standard Cost Calculation Parameters (ticpr0100m000) session, specify this information:
    Standard Cost Calculation Code
    The price calculation code used to determine the standard cost price. Other price calculation codes are used for simulation purposes.
    Type of Operation Rates
    This parameter indicates the type of operation rate that determines the calculation of the standard cost.
    Include Fixed Costs in Valuation Price
    If this check box is selected, the fixed surcharges and operation rates are included in the valuation price. You can also use this parameter to determine the actual production order costs. This parameter is important for standard items for all valuation methods.
    Note: The surcharges and operations rates can be defined as fixed or variable cost.
  5. Access the Item Costing Data (ticpr0107m000) session, specify this information:
    Scheme
    You can define the cost component scheme that specifies the cost breakdown of the costs of the item to the required level of detail.
    Surcharges by Item
    If this check box is selected, you can define surcharges for the item.
    Surcharges by Warehouse
    If this check box is selected, you can define warehouse surcharges for the item.
  6. Access the Production Order Parameters (tisfc0500m000) session, specify this information:
    Process Hours using
    Define the rate to be used for the registration of hours. You can choose between Estimated Operation Rates or Actual Labor Rates.