IT.UA - home page



Production cost accounting

Reduce production costs by improving management efficiency, combine accounting with production process accounting


The system allows to effectively solve problems

Implementation of various methods of accounting for actual production costs

Distribution of total production costs in accordance with the methodology adopted at the enterprise

Cost accounting according to the method of the cost accounting at the places where they occur

Actual costs accounting for the of auxiliary production

Regular processing of primary documents

Formation of analytical reporting

Cost determining methods

  • At enterprises, various methods of cost accounting for production are applied:
  • "Concentration" collection of costs and then distribution methods - for example, in proportion to the standards, in proportion to the costs of another period, in proportion to the coefficients, in proportion to the selected distribution base
  • Identified accounting of costs by cost centers according to the technological process of manufacturing each part and assembly unit of the product (semi-finished products) by calculation items
  • Direct allocation of costs to orders
  • Regulatory Costing Method
  • Balance method of cost accounting with the subsequent distribution of the issue
  • Special (industry) methods

In IT-Enterprise system can be implemented various methods of accounting for the cost of production. Moreover, several methods can be applied at the same time, for example, the “accounting” actual cost is calculated by the “concentratoin” method, and the management cost by the method of the identified cost accounting at cost centers.

At present, most enterprises set the task of taking into account the costs of the method of identified cost accounting according to their place of origin and the technological process.

This method allows you to take into account costs based directly on the primary production workflow, and eliminates the main drawback of traditional methods - parallel, unrelated quantitative accounting in production and accounting cost accounting of costs. At the same time, these two accounts — production (managerial) and accounting — merge into a single quantitative-value scheme for accounting and calculating the actual costs of production.

The main documents when using this method are the primary production documents "Act of generation", which combines three types of accounting:

  • production (quantitative) accounting of production of PAU/semi-finished products for each process operation/redistribution
  • operational and accounting write-offs used in the production of raw materials and materials for the specific production of PAU/semi-finished products
  • accounting of labor in the form of calculating piecework wages in the production of time standards and rates

In the course of production, in the workshops, the generation acts are formed, where the fact of production is promptly recorded and at the same time a write-off for generation is recorded:

  • raw materials, materials, components that are in the stock of the workshop (on site) at the time of writing off the standards and/or actually, with reference to the standards or replacement cards (technological notifications of changes)
  • normative piecework wages; the calculated wage for production is subsequently transferred to the module “Piece wage” and does not require separate closure of the orders

This method provides:

  • write-off from the stock in the shop of raw materials, materials and components and transfer their value to the developed semi-finished product
  • calculation of transaction costs
  • accumulation of previously incurred costs
  • transfer costs to subsequent operations
  • accounting of work in progress (WIP) at actual cost
  • distribution of workshop costs at the cost of producing workshop
  • accounting of finished products and sales at actual cost

The main effect of the use of this method is achieved at the stage of operational cost control in production, as well as when analyzing the actual cost of production and analyzing the results with the explanation of the reasons at the primary level of shop accounting. Operational cost control in production allows to control the write-off of raw materials and materials, components, the accrual of standard piecework wages online.

This method is described in detail in the product description “Operational cost management in production”

Accounting for the actual costs of auxiliary production

The module is intended for automation of:

  • cost accounting in the auxiliary production workshops
  • accounting of production of products and services in the workshops of auxiliary production
  • generating auxiliary production reports
  • synthetic billing accounting

Cost accounting of "simple" auxiliary production and distribution services on the side:

  • accounting of simple services of auxiliary production by divisions of an enterprise
  • calculation of the actual cost of a unit of service
  • rate of services rendered at the approved prices (counter and fixed services), at actual cost, at fixed prices
  • forming of analytical reports on workshops

Accounting for work orders for the workshops of auxiliary production:

  • accounting of order fulfillment
  • accounting of work orders in work in progress
  • accounting of the actual costs of materials and wages for work orders
  • calculation of actual cost estimates for work orders
  • forming analytical reports on workshops

Formation of production reports of auxiliary production workshops in accounting and actual prices by type of work and by work orders.

Calculation of turnovers on the costs of auxiliary production in the enterprise and workshops, the formation of analytical reports on the distribution of services of auxiliary production.

Document processing is performed in accordance with the regulations described by means of the designer of business processes and document flows of IT-Enterprise system. The regulation allows defining the roles of those involved in the processing of documents and the procedure for processing documents.

Reporting tools (designer of tabular and crosstab reports, reports of irregular structure) allow you to customize any forms of source documents and summary reports.

Numerous analysis tools offered by IT-Enterprise system (turnover balance sheets, grid lists, account cards, analytics cards, etc.) provide summary information in sections and with the degree of detail required for accounting costs.



of our system

Various production cost accounting methods

Cost accounting by the procedure of identified cost center and technological procedure accounting

Generating and accounting costs immediately at the level of primary production documents flow

Integration of production accounting and accounting

Automated distribution of general production costs in compliance with the procedure accepted at the enterprise

Routine processing of documents, control of the documents flow by stages

Minimizing errors in accounting due to automated control at documents entry and processing

Efficient analysis and control tools at all stages of the accounting management

Still, have questions?

Get in touch

our business proposal
our business proposal
Fill the form