Revolutionizing Cost Management with Diligent Global’s SAP Solutions

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Revolutionizing Cost Management with Diligent Global’s SAP Solutions

Overview:

A prominent ceramics manufacturer partnered with Diligent Global to overcome challenges in cost allocation and valuation across its various group companies, aiming for improved cost visibility and group-level financial consolidation.

Challenges:

  • Complexities in calculating actual cost of materials resulting in inaccurate costing.
  • Difficulty in obtaining clear visibility on dimensions like Customer Group and Product Line.
  • Lack of proficient system support in the existing inventory when only legal stock of RAK goods was available.

Solutions:

  • Implemented product costing aligned to design and overhead accounting systems.
  • Developed and integrated a solution for Material Ledger to calculate actual costs at the batch level.
  • Enhanced Group Valuation functionality in the ECC EHP 7 to support the cost visibility at group level.
  • Created a custom consumption-based daily work order based on actual consumption per day.

Results:

  • Attained a sophisticated Actual Cost calculation for each batch of goods produced.
  • Enabled the client to make informed decisions on product pricing and valuation.
  • Facilitated visibility into multi-dimensional group-level financial consolidation and reporting.

Summary:

Diligent Global’s intervention enabled the client to gain granular control over their costing mechanisms and group valuation processes. This transformation not only streamlined the financial reporting but also supported strategic business decisions based on accurate and timely data.
For expert solutions in cost management and group valuation that empower decision-making, connect with Diligent Global.
Email us at info@diligentglobal.com for more information on our services.