Order Costing

The Order Costing model enables cost-based and variance analysis against manufacturing order processing. The analysis covers all kinds of variances between cost according to defined standards and actual costs reported against a manufacturing order. There are two ways to analyze the model: view the total cost incurred in acquiring of manufacturing semi-finished products, and view the total for each kind of cost separately. These are controlled by choosing the appropriate order costing level.

This model provides insights into these topics:

  • Actual costs by costing component
  • Products that are manufactured closest to the standard cost
  • Trend in actual cost and cost per unit for a product

By adding various types of dimensions, you can analyze variances from products, raw materials and packaging, and processing plants and lines. The facts in this model can be analyzed by finish date.

Source information

The order costing model retrieves data from these order costing files:

  • Order costing material components (CPOCOA)

    This is where costs for costing component A are retrieved.

  • Order costing operation components (CPOCOM)

    This is where costs for costing components B, C, and D are retrieved.

  • Order costing semi-finished material (CPOCOS)

    This is where all costs for semi-finished materials are retrieved.

  • Order costing product cost (CPOPRO)

    This is where costs for costing component E are retrieved.

Only the costs from manufacturing orders are retrieved in the above source files.

This model has two fact tables, one captures the costs at the material level, and the other one at the finished product level