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Planned prime cost

The module for calculating the planned prime cost is designed for automating the pricing of products, keeping price history, calculating the planned prime cost, creating a tool for managing the company's profit.

Various prime cost planning procedures are supported; the prime cost of product output by periods shall be calculated based thereon.

• Maintaining price tags of purchased goods and materials
• Price history of purchased goods and materials
• Maintaining own-made products/services price list
• Multiple option standard products cost estimates by the enterprise with a possibility of specification by shops
• Various calculation periods – for a year, quarter, with the total from the beginning of the year, with the total from the beginning of the quarter
• Various prime cost types – production, total, by variable expenses etc.
• Semi-finished and non-semi-finished prime cost calculation procedures; comparative analysis of results by different procedures
• Completely knocked down assembly method for discrete operation based production
• Randomly adjustable products fixed cost allocation procedures. For example, for variable cost, payroll, tangible cost, products complexity factors, production volume, normative or actual equipment operation machine hours, manufacturing costs, marginal income, random items expressions etc.
• Standard Cost procedure for large-scale manufacture

Variants for calculation of production break-even points:

• calculating production profitability at fixed nomenclature, production volume, market prices and permanent costs
• variant generation of nomenclature and production volume at fixed market prices, profit on production and permanent costs
• variant calculation of the enterprise’s permanent cost level at fixed production volumes, market prices and profit etc.

A flexible calculation of product unit prime cost and pricing estimate shall be achieved due to the calculation method setting system open for the user

• Arbitrary cost items
• Configurable cost items calculation types (by standards, random items expressions, coefficients through the other items, via external procedure etc.)
• Configurable rounding scales for calculation items
• Configurable costing display forms
• Semi-finished and non-semi-finished costing procedures
• Different levels of profitability and pricing in any currency

When calculating the planned prime cost according to the standards, the details of direct costs to cost estimates is automatically generated. While interpreting, the prices of material resources at the warehouses, the prices of procurements for an arbitrary time period, the prices of assignments to production, and the prices of supply contracts shall be analyzed. Operating currency prices for imported raw materials is supported together with an automatic recalculation of prices in the national currency in case of the exchange rate changes. The period of validity of standards shall be considered. Tangible costs and payroll shall be interpreted based on specifications, technical routes, consumption rates of materials and time standards and rates. Hierarchical structure of the product with the calculation of costs for each level (assembly unit) shall be displayed.

Costing of the following is supported:

• products modifications (design variants)
• effects of design-engineering changes in products

One of the standards-compliant costing variants shall be “approved” as basic for further economic analysis based on the completed variants calculations:

• analysis of price behavior and profitability level by periods
• analysis of dynamic pattern of cost items by periods
• analysis of cost changes by product size etc.

The volume and nomenclature of the actual products output shall be analyzed:

• actual products output shall be calculated by nomenclature and volume, by orders and consumers, by periods
• analysis of the nomenclature and production volumes shall be executed over the enterprise and the main shops in physical and monetary terms for the year, quarter, month with progressive totals for the year and quarter
• comparative analysis of the goods output volume of two periods in comparable prices (in prices of the first or the second period), recalculation of goods output in the prices of a comparable period shall be executed
• analysis of the goods output behavior in physical and monetary terms by product groups/makes shall be executed by years, quarters and months
• a flexible system for configuring reporting forms for the analysis by nomenclature, criteria structure and periods is provided