Order Costing
The purpose of this model is to enable cost-based and variance analysis against manufacturing order processing. The analysis covers all types 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 component separately. These are controlled by choosing the appropriate order costing level.
This model provides insights into these topics:
- Actual and standard costs by costing component
- Products that are manufactured closest to the standard cost
- Trend in cost variances for each costing component and product
By adding various types of dimensions, you can analyze variances from products, raw materials and packaging, and processing plants and lines. The facts can be analyzed by the Order Costing date.
Source information
The order costing model retrieves data from these order costing files:
- Order costing material components (CPOCOA)
This is where material costs (Costing Component A) are retrieved.
- Order costing operation components (CPOCOM)
This is where operation, tool, and subcontract costs (Costing Components B, C, and D, respectively) are retrieved.
- Order costing semi-finished material (CPOCOS)
This is where all costs for semi-finished materials are retrieved. The costs are available in two levels: All, where the total costs of semi-finished products are included as material costs, and This Level, where the costs of the semi-finished products are included in the respective costing components.
- Order costing product cost (CPOPRO)
This is where product overhead costs (Costing Component E) are retrieved.
Only the costs from manufacturing orders are retrieved in the above source files.