Biocon is a leading Bio Pharma and clinical research company in India . It has operations in various countries and also do cross country sales and purchase of its own product . They produce API and formulation in around 8 plants in India .
Challenge was to get Actual cost of production at Batch level .
Since material was sold to group companies at a legal transfer price , key requirement was to get group cost of inventory . This information was also required for group consolidation .
Ascertaining Cost involved in clinical research program was another key requirement.
Scope was to set up Standard / actual costing system at Batch level with legal and group valuation .
Allocation of marketing cost / R & D cost based on Time sheet booked by sales department and scientist in various product group .
Group Costing with legal valuation was implemented.
Group valuation was a big plus for the customer wherein a clear visibility was provided on profit components tied up in closing stock valuation . This would enable them to do group consolidation faster .