RAK Ceramic Wanted a System which can calculate actual cost of the ceramic products taking into consideration Wastage , Raw material actual cost , Quality loss etc. Key challenge was to get actual cost at the batch level.
To get Profitability on dimensions like Customer ,Geography , SKU code .
To find out profit element tied up in the closing inventory when one legal entity of RAK sells goods to another legal entity of RAK.
Implement Product costing to design Costing and overhead accounting system .
Implemented Actual costing / Material ledger to calculate actual cost at the Batch level .
Implemented Batch valuation .
Implemented Group costing functionality as in ECC EHP 5 to get the cost visibility at group level .
Developed a utility to confirm consumption of clay on multiple work order based on total consumption per day .
RAK ceramic is able to calculate Actual cost for every batch of SKU produced .
Able to figure out group Profit tied up in the closing inventory , This enable early consolidation of legal entities .
Able to close MIS reporting ( On multiple dimensions ) Quicker and accurately .
Automation of clay consumption eased out manual intervention.
Able to track Standard Vs Actual Cost at SKU level . Enabling variance analysis and thereby taking corrective actions.