In the mind of cost accountant may Questions arises before going to implementing ERP
- How common costs would be allocated to Plants or Products?
- What basis of allocation will be used as cost driver to allocate Warehouse, GPO & QAD Overheads?
- How cost will done for a batch which was unqualified by QAD after several stages are completed?
- How Spending and Volume variances will be measured in absence of a Budget?
- Is it possible to come back from Actual to Standard cost environment at any point of time? If yes, then how Variances will be reflected in the system?
- How inventory revision will be done in the system then? Who and How…….
- Will it be possible to change a cost driver or allocation base at any point of time?
- How inventories located in locations, lacking ERP system, will be accounted for? How contribution margin or Profitability Analysis would be done?
- How Variable and Fixed portions of manufacturing overheads will be measured?
- How provision for Unusable material/products would be done in the system?
- How abnormal loss in production will be treated in costing?
- How interplant or intercompany loans of materials will be shown?
- How changes in Selling Price of a Product will be tracked which influence the Profitability?
- What will be the effect of GL if a material once released is rejected subsequently, even after a month or two?
- What would be the position of materials inventory if materials once released in one plant is transferred to another plant or received internally (in case of physical count)?
- How findings in annual Stock Take will be adjusted in inventory?
- How WIP will be measured: Only materials or Materials plus Overhead?
- Which cost of a product will be considered for calculating GP or COGS: W. Average or Specific?
- How Resource changes in production and QAD process will be reflected in Costing?
- How Cost for Export and Samples will be done in absence of Formula?
- If a sample product is produced from a commercial batch and no formula-routing is followed or no Catch Cover is used; only cut-through and pack approach is applied then how product cost will be done?
- How Resource Cost/Hour will be computed?
- Will factory depreciation be allocated cost center-wise or in only GPO?
- If a Trade price is amended which is notified to be effective from a specific day, how invoicing would be impacted? If amendment is done in the middle of the month, what will be the position of sales of that month?
- Under which module the TP, NSP, MRP related data will be updated?