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]Real Costing
Raul MoralesBusiness Development
Real Experience. Real Advantage.
[
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Real Experience. Real Advantage.
[ Sugar Historical Prices
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Real Experience. Real Advantage.
[ Corn Historical Prices
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Real Experience. Real Advantage.
[ Coffee Historical Prices
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Real Experience. Real Advantage.
[ Oil Historical Prices
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Real Experience. Real Advantage.
[ Exchange Rate Changes
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Real Experience. Real Advantage.
[ Back to Base
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Real Experience. Real Advantage.
[We see new external factors affecting business Globalization – plants in different locations Exchange rates fluctuations – markets integration
are changing exchange rates in real time Automation – different plants, different
productivity Logistics integration - new routes, several vendor
options and cost fluctuations Energy – oil prices and energy prices are changing Commodities – raw material price is changing daily Risk and Hedge Management
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Real Experience. Real Advantage.
[
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Learning Points
What is an economic event? Nature Date Amount
Now technology is allowing to register economic events in real time and apply for two important objectives: Legal requirement, Banks, Stockholders,
Government Monthly, Average or Standard, Not accurate for
decision Making Management decision making process
Real cost, Trustable information
Real Experience. Real Advantage.
[ Detailed Standard Cost x Real Cost
Global Standard Cost per Material and Plant MonthMaterial Ledger is not activatedNo Real Raw Material variations No Real Labor variations No Distributed Overhead per plant No General Manufacturing CostsNo Multilevel Actual Products Real No Finished ProductsNo MulticurrencyNo tools to adjust planned
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Detailed Monthly Real Cost per Material and PlantActivated SAP Material LedgerReal Raw Material variations Real Labor variations Real Overhead per plant General Manufacturing CostsMultilevel Actual Products Real Finished ProductsMulticurrencyAdjust of planned near of real
Real Experience. Real Advantage.
[
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Material Ledger/Actual Costing Carry material prices in Multicurrency and actual
costing Up 3 currencies/valuations
Covers: Inflation Exchange Rates
Carry your inventories in 3 different valuations Legal Valuation Valuation for reporting Profit center valuation
Actual Costing calculates an actual price for each material
Valuation using a moving average price results in the following: Goods receipts are posted at the goods receipt
value. The price in the material master is adjusted to the
delivered price
Real Experience. Real Advantage.
[
MARKETING
QUALITY
LOGISTICS
TECHNOLOGY
HUMAN CAPITAL
CUSTOMER SERVICE
MARKETING
QUALITY
LOGISTICS
TECHNOLOGY
HUMAN CAPITAL
CUSTOMER SERVICE
Ohter
Profitability Analysis
Revenue (+)Cogs (-)= GMOverhead (-)=EBITDA
Real Experience. Real Advantage.
[ It is not an ERP activation it is a culture change Real costing requires:
Material Ledger activation/Actual Cost Process review – procurement, production,
warehouse management, transportation, sales, profitability analysis
Master data review – materials, bill of material, final products, co products, routes
New functionalities activation – material ledger, standard transportation, bill of material, standard warehouses, production orders
Strategic understanding of Supply Chain Process
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Real Experience. Real Advantage.
[ Material Ledger
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Real Experience. Real Advantage.
[ Actual Costing
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Real Experience. Real Advantage.
[ Profitability Analysis
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Real Experience. Real Advantage.
[ Product Costing Planning
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Real Experience. Real Advantage.
[ Actual Cost Component Split
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Real Experience. Real Advantage.
[ Plant Price
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Real Experience. Real Advantage.
[ Material Price Analysis
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Real Experience. Real Advantage.
[ Material Price Analysis
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Real Experience. Real Advantage.
[
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Real Experience. Real Advantage.
[ Price Analysis
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Real Experience. Real Advantage.
[ Integrating Economic Events
Trustable information for decision making process Critical information available in real time Process automation Focus on process improvement Scalable for more complex costing models
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Real Experience. Real Advantage.
[ Colombian Coffee
Founded in1927 Coffee Producers Union Non Profit Organzation Considered the best coffee around the world Supporting more than 500k families 1,000 SAP Users Version 5.0 New controlling culture, based on Real Cost and
Shared Services
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Real Experience. Real Advantage.
[ Large Corn Ingredients Company
More than 2,000 SAP uses 10 production plants Mexico, USA and Canada Guadalajara Mexico and Chicago Review current Costing Model Activating Material Ledger and Product Costing
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