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26
Mar

Diligent Global are experts in providing SAP solutions to global clients across all industries. These client stories are some examples of how we have delivered product costing and profitability analysis modules for leading enterprises.

EPC for a leading FMCG brand in India

This client had been using Standard Costing in SAP for 15 years, which did not give them profitability reporting by product group, brand, sales channel etc. Our challenge was to deliver Actual Costing and re implement COPA on their live system.

Diligent delivered a costing and overhead accounting system through the implementation of Product Costing. We installed Actual Costing and Material Ledger to calculate cost at batch level, and this allowed us to introduce Batch Valuation. At the successful conclusion of this project, our client was able to analyze profitability with actual costs across multiple dimensions.



EPC for a global manufacturer

Our client with over 200 factories in India had been using SAP since 2008. They needed a tool to estimate the cost of manufactured goods so that this data could feed into their Annual Operating Plan (AOP).

SAP does not provide this functionality directly, so Diligent developed a bespoke solution that estimated Cost of Goods Sold (COGS) based on weighted average monthly costs of raw materials, while accounting for opening stock and estimated monthly procurement rates. This customized tool was integrated with other business planning functions, enabling our client to calculate COGS with greater accuracy and efficiency. Other business functions were also able to import and utilise this valuable data.



Actual Costing for a Biopharma and clinical research organization

Our client is a leading Biopharma and clinical research company operating internationally with eight plants in India producing APIs and formulations. Our challenge was to help them achieve actual cost of production at batch level. Group companies purchased materials through legal transfer pricing, so the key requirement was to calculate the group inventory cost. This data was also necessary for group consolidation and costing their clinical research program.

The scope of the project was to set up Standard Costing and Actual Costing at batch level, enabling both legal and group valuation. A key deliverable was the ability to allocate marketing costs and R&D costs, based on timesheets submitted by the sales department and scientists across product groups. Group valuation was of great value to the client, providing clarity on the profit components of closing stock valuation, which in turn facilitated faster group consolidation.



Contact Us to learn more about our product costing and profitability analysis projects.

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