Overview
To apply the standard cost for manufactured products, it is necessary to start regularly or set an automatic trigger for running preliminary costing procedures for a group of companies.
In comparison to final month-end closing, the preliminary closing has limited procedures related to cost calculation and allocation aimed to:
- Calculate actual cost of stock materials, including additional expenses on procurement, transportation, and custody.
- Calculate standard cost of manufactured products.
Keep in mind that the preliminary closing procedures provide approximate cost figures that you can change during the final month-end closing.
Perform preliminary costing flowchart
Paths
| Path | Profitability & cost → Month-end closing → Month-end closing |
|---|---|
| In-app link EN code |
e1cib/app/DataProcessor.MonthEndClosingOperations
|
| In-app link RU code |
e1cib/app/Обработка.ОперацииЗакрытияМесяца
|
How to enable tracking of differences between preliminary and final costing
1. Go to Profitability & cost and then click Month-end closing under Month-end closing.
2. Click Settings → Configure parameters of month-end closing operations.
3. In the Final month-end closing section, set Yes for Highlight cost deviations in the final calculation from the preliminary calculation result.
How to manage preliminary costing procedures
1. Go to the Month-end closing workplace.
2. Select the Preliminary closing option.
3. In the Month field, select an end date of the closing month.
4. Select a company.
Manually in step-by-step mode
1. Review the Production expense allocation section.
2. Find the Configure expense allocation procedure status. The system checks if any Expense allocation must be registered.
3. Click the Execute hyperlink to start the automatic procedure.
4. Review the Cost calculation section.
5. Find the Cost allocation and cost calculation procedure status. The system checks if this procedure was performed successfully.
6. Click the Calculate hyperlink to start the automatic procedure.
Manually with one button
1. Click Run procedures at the top of the form.
Automatically on schedule
1. Click Settings → Configure automatic month-end closing to manage regular period-end closing.
2. Select a Company.
3. In the Current month section, select the Preliminary closing option.
4. Click the Schedule is not set hyperlink and set a daily schedule on the Daily tab.
The system will create the Month-end closing for company scheduled job that will trigger month-end closing procedures.
Note
You can simultaneously run the month-end closing for each enterprise company. However, you cannot run several sessions for one company at the same time as it is automatically locked by the application.
Besides, the application considers relations between companies using the Intercompany scheme and those using fixed assets and intangible assets along with other enterprise companies. The month-end closing procedure is performed for such companies at the same time only.
To manage the load on the information system, a user with the administrator rights is granted access to the settings of the technological parameters for closing stages of the month. It allows, for example, adjusting parameters that affect the speed of calculations.
Paths
| Path | Profitability & cost → Profitability and cost reports → Intercompany → Warehouse stock by companies |
|---|---|
| In-app link EN code |
e1cib/data/Catalog.ReportsOptions?ref=89db0050569f7a5511eda3bd4232d49f
|
| In-app link RU code |
e1cib/data/Справочник.ВариантыОтчетов?ref=a7a9000d884fd00d11e4c1801775011b
|
| Path | Profitability & cost → Profitability and cost reports → Inventory cost → Company inventory cost |
|---|---|
| In-app link EN code |
e1cib/data/Catalog.ReportsOptions?ref=89db0050569f7a5511eda3bd4232d508
|
| In-app link RU code |
e1cib/data/Справочник.ВариантыОтчетов?ref=811c60a44ccf99dc11eccd5ce40cc495
|
How to review preliminary cost of trading materials
1. Go to Profitability & cost, click Profitability and cost reports, and then open the Warehouse stock by companies report under Intercompany.
2. Set a period, select a company, and click Generate.
3. Review the quantity of materials in the stock.
4. Go to Profitability & cost, click Profitability and cost reports, and then open the Company inventory cost report under Inventory cost.
5. Set a period, select a company, and click Generate.
6. Review the cost of the material stock.
Paths
| Path | Manufacturing → Manufacturing reports → Cost analysis → Analysis of released product cost by company |
|---|---|
| In-app link EN code |
e1cib/data/Catalog.ReportsOptions?ref=89db0050569f7a5511eda3bd4232d57f
|
| In-app link RU code |
e1cib/data/Справочник.ВариантыОтчетов?ref=a7a9000d884fd00d11e4c180177500f6
|
How to review preliminary cost of products and compare it with standard cost
See how to review standard cost on the Perform standard cost calculations page.
1. Go to the Company inventory cost report.
2. Set a period, select a company, and click Generate.
3. Review the calculated product cost.
4. Go to Manufacturing, click Manufacturing reports, and then open the Analysis of released product cost by company report under Cost analysis.
5. Set a period, select a company, and click Generate.
6. Review the detailed structure of the product cost.
7. Compare the preliminary cost with the standard cost.