Movex Version 12 Financial Integration. Agenda Movex V12 Financial Integration Background Integration Requirements New Function for Invoice Matching Highlights

Movex Version 12Financial Integration

Agenda

Movex V12 Financial Integration

Background Integration

Requirements New Function for

Invoice Matching Highlights of Version

12 Cost Accounting Summary

Strategic Level - Management Accounting

ProcessPerformance

Financial Cockpit

Balanced Scorecard

Activity-BasedManagement

EnvironmentControl

IntellectualCapital

Fin. HealthCheck

Activity-Based Budget

CurrentAssets

TaxManagement

Multi-UnitCoordination

Risk Management

GeneralLedger

Accounts Receivable

Accounts Payable

Fixed Assets

TimeAccounting

Budgeting Cash FlowCost

AccountingProductCosting

BusinessPerformance

Consolidation

ReportGenerator

Tactical Level - Financial Controlling (FIC)

Operational Level - Financial Management (FIM)

Financial component groups

Supporting Finance at Three LevelsMovex V12 Financial Applications

This presentation

will show examples

of “double entry

”!

Movex Financial

Integration

Financial integration

Financial Integration

Movex V12 Financial Applications

Consolidated Requirements

AR/AP-related requirements Invoice matching Print copy invoices from inquiry

Taxes and general ledger VAT Sales tax INTRASTAT

Fixed assets Create via the purchasing flow

Cost accounting Improve the connection between

logistics/production and finance Closed circle for MRO


Rule set in

(MMS003)!

Movex Financial

Integration

Accounting Rule Moved to Facility Level



(CAS180) uses th

e

acquisition pric

e on

each MITTRA re

cord

Movex Financial

Integration

Inventory Valuation or Inventory Reconciliation



Why Has Intentia Redeveloped This Function?

Demand from the market To meet changes in technology To prove concept of an integrated solution Reduce time spent on reconciliation To give customers an efficient process To increase flexibility in matching To match invoices at receipt level To enhance tolerance controls

New function for invoice matching


Rule set in

(OIS010/FAM)

function!

Movex Financial

Integration

Order Type Connected to Voucher SeriesMovex V12 Financial Applications


Invoice matched against goods receiptInstead of always matching invoice lines against the purchase order line. In Version 12, a single goods receipttransaction can be selected for matching.

Solution in Movex

Total redesign of invoice matchingNo files or programs have been saved from Version 11.

Invoiced not receivedIf the goods have not been received, the invoice line is entered as “Invoice not received.” The accounting for this line is later reversed when the goods arrive.

Simplified purchasingFor non-inventory items, a new inventory accounting method (type = 5) has been introduced. No accounting isdone at goods receipt, instead all accounting entries are created at invoice matching.

Creating accounting entries In order to create accounting entries for a single invoice line, the line must be approved. Invoice lines that cannot be approved are booked to a clearing account.



Solution in Movex

Automatic invoice matchingElectronically received invoices, created in (APS050),will be automatically matched to the goods receipttransactions when the invoice updates AP,option 9 in (APS050).

Creating fixed assetsIf the GL account is defined as a fixed asset account, it isnow possible to create a fixed asset directly from theinvoice matching programs. Normally, the capital item purchased will be set with inventory accounting method “Simplified purchasing” in (MMS003).


Third-party chargesWhere the purchase costing model contains external charges these can now be invoice matched to invoices from a third party.

Price variance at goods receipt

In a standard cost environment, a price variance between PO price and the standard cost is recognized at goods receipt.


New rules fo

r

updates

MITAVP replaced by

FCAAVP

Movex Financial

Integration

Average Cost History



New Files for Goods Receipt

FGRECLGoods Receipt

- Line

FGRPCLGoods Receipt - Line Charges

FGRECL

One record per receiving number

FGRPCLOne record per receiving

number and costing sequence numberGoods

receiptThe data in these files can be displayed in the new program, (APS370) and (APS371).

New Function for Invoice Matching

Accounting Entries at Goods Receipt

Three different settings in (CAS900) are possible to determine when accounting entries and general ledger updates should be processed.

1. Two manual stepsOnly goods receipt files are updated when user ends (PPS300). Accounting entries are created manually from (CAS950). Update of general ledger is done manually from (CAS950) or (CAS960)—this is as the solution in Version 11.Goods

receipt 2. One manual stepAccounting entries are immediately created when user ends (PPS300). Update of general ledger is done manually from (CAS950) or (CAS960).

3. Automatic accounting A voucher is immediately created when user ends (PPS300).


VAT code can be

a divisional

exception

Movex Financial

Integration

VAT Rate Determined by Country and Area/State




Goods receipt

Program Flow at Goods Receipt

Batch job (CAS951CL) always starts when user ends (PPS300) or (PPS330).

CAMNGCCI

Write to CINACCCINACC

(CAS961)

Update FAMGeneral ledger

(PPS300)

Goods receipt

(CAS951CL)

Control program

CAMNGTT2

Manage 20-29

FGRECL (CAS951)

Read MITTRA

FGRPCL

(PPS330)

Dlt goods receipt

FGRPCL

General ledger

VAT code for

buying and selling

in (MMS002)!

Movex Financial

Integration

VAT Code at Item Warehouse LevelMovex V12 Financial Applications


Purchase order

Goods receipt

Standard cost

010 Purchase base price 99.00020 External, line charge 3.47030 External, distributed charge 3.47040 External, header charge 3.47050 Internal, line charge 12.00060 Internal, distributed charge 12.00 Total 133.41

90.00 3.50 3.50

12.00 12.00121.00

PP10-910 Inventory 121.00

PP10-225 Received not invoiced - item 99.00 -

PP10-226 Received not invoiced - line charge 3.47 -

PP10-226 Received not invoiced - line charge 3.47 -

PP10-251 Internal line charge 12.00 -

PP10-911 Price variance 8.94

PP10-251 Internal line charge 12.00 -

New Function for Invoice Matching Example Accounting Entries

VAT registra

tion

number on

warehouse

Movex Financial

Integration

A Division Can Have Warehouses in Another Country



Allowed Variances at Invoice Matching

The tolerances between purchase order and invoice are defined in the new program (APS900).

User-defined keys More specific tolerances can be defined in addition to the above general rules with up to three additional user-defined keys, as set in (CRS016).

Supplier number Item group Order type Item number Supplier group Item type Product group Procurement group

Invoice matching

General price tolerancesBoth an amount and a percentage variance can be defined. The amount variance is defined per piece in invoice currency, PO price U/M.

General quantity tolerancesBoth a unit and a percentage variance can be defined. The unit variance is defined in the PO U/M.


Received quantity

10.00

Received cost

9.90

Received cost amount

99.00

Invoiced quantity

Invoiced cost amount

Inv matching status

Inv matching date

Allocated by invoice no.

Received exch rate

1.00000

Data fields FGRECL (Receipt line)

Invoice quantity

7.00

Invoice price

10.50

Additional cost

0.00

Status - quantity

0

Status - acct entries

0

Invoice net amount

73.50

Data fields

Status - price

0

FGINLI (Invoice line)

Quantity variance:

3 PCE/30%

Allowed quantity variance:

4 PCE/10%

Not approved

Price variance:

0.60 GBP/6.06%

Allowed price variance:

3.60 GBP/15%

Approved

Example: Allowed Variances

Settlement

discount for B

E;

GB and SE

in (CRS045)

Movex Financial

Integration

VAT Rules on Country CodeMovex V12 Financial Applications


Product Costing and Cost Accounting

Movex V12 Financial Controlling

Distribution key on B components Totals of element type in product costing Changed database structure for order

costing (introducing balance file, etc.) Improved analysis of order costing on all

levels (item, item group, work center, etc.) Introduced alternative rate on operations Allocation of sales and administrative costs Option to create detailed account entries for

WIP Changed account for subcontracted items New possibilities in acct. for customer order Improved analyses of internal acct. entries Introducing resource drivers in CA Changes in average cost history New printout for inventory reconciliation

Overview

Three cost distribution keys in (PCS010E)

The first key must be work center

Keys two and three can select fields from field group C, program (CRS109)

Values for each cost distribution key are entered in (PCS100B) and

(PCS011G)

Solution in Movex

Changes in Product Costing

Distribution keys on B components

Why Has Intentia Developed This Function?

Changes in Product Costing

Improve the display functionality in a costing model User-defined component

totals for display purposes not included in subtotals

Both details and component totals in one costing model

New costing element type not included in subtotals or final total (PCS002)

Totals of element type in product costing


Changes in Order Costing Analyses

Changed database structure for order costing

Changing the database structure was a prerequisite for the functional requirements in order costing analyses, which are:

Possibility to drill down from one order to single material components/operations

Possibility to follow up higher levels than order, for example product or item group

To be able to see the full cost; the product OH (E components) should also be saved in the order costing

Every new order costing of an order should be saved

New file structureThe old file for order costing, CPOCAL, has been replaced with a totally new file structure containing a number of new files.

Three different types of valuesThree different types of values are saved:• Actual value • Standard value• Scrapped value



Solution in Movex

New File Structure

The order costing data is saved in 14 new files on four different levels

1. Accumulated per period and, for example, product

4. Per costing component and value type

3. Per material component/operation

2. Per order


Three Different Types of Values

All files prepared for the following value

types:

Standard cost (Std qty * Std rate)

Actual cost (Act qty * Std rate)

Fixed

Fixed

Fixed

Actual cost (Act qty * Std rate)Variable

Standard cost (Std qty * Std rate)Variable

Post-actual cost (Act qty * Act rate)Variable

Post-actual cost (Act qty * Act rate)Fixed

Scrap value (Act cost * Scrap qty)



Detail accounting entries for variancesThe accounting entries for order costing variances can be created on a detail level. This means that the variances will be created per material component and operation number.

Split accounting entries for variancesThe accounting entries for order costing variances can be split into costing components according to “this level” or “all levels.”

Changes in Order Costing AnalysesSolution in Movex

Improved analysis of order costing

New programs to display order costingOld program to display order costing (CAS304) has been replaced with a number of new programs.

Order costing sequence numberEvery order costing belongs to an order costing sequence number. This makes it possible to analyze the order costing history.

Release MO for order costingThere are three different ways to release a MO for order costing:• Automatically when the status in set to 90• Automatically from batch job (CAS320)• Manually in (CAS310).

Changes in Order CostingNew Programs for Display of Order Costing

(CAS312)

Display Product Structure

(CAS313)

(CAS311)/(CAS312)Total values per order number displayed according to product structurePanel versions used to define what should be displayed in sub-filePossible to select whether material/operation should be displayed with one line per order costing or accumulated to one line per material/operation Several options to jump to related programs

(MMS070)(CAS300) (CAS315)(PCS300)

Improved

analysis of order costing

Changes in Order CostingNew Programs for Display of Order Costing

(CAS313)

Display Product Costing Model

(CAS313)

Total values per material/operation displayed according to product costing model

Panel versions used to define what should be displayed in sub-file

Values displayed per order costing sequence number

Possible to display according to “this level” or “all levels”


Release MO for Order Costing

Order can be released for order costing in three different ways:

Indicates whether order is released for order costing

1. Automatically when the order is closed, that is, receives status

90, as defined for the manufacturing order type in (PMS120)

3. Manually in (CAS310) using option 9

2. Automatically, in a batch job in (CAS320), provided that the order is closed

Changes in Order Costing



VariousChanges inCost Accounting

Introduced alternative rate on operations

Rate used for operation reporting was always equal to the standard rate

Using an alternative rate different from the standard can be needed for the following reasons:

Someone other than planned is doing the operation

The operation is performed outside normal working time

Introduced alternative rate on operations

VariousChanges inCost Accounting When reporting operations, in (PMS070)

or (MOS070), it is possible to enter a costing type. This costing type is later used when the accounting entries for the debit to WIP “Actual cost” (PM20-920) are created.

Costing type displayed as default at operation reporting is defined in (PCS001) (parameter 15). Whether the costing type can be changed in (PMS070) or (MOS070) is controlled by the ‘Select parameter’ field in (PDS010/G).

New parameter on work center also controls whether any cost accounting transactions should be created.

Solution in Movex

Example: Customer Order Invoicing

OI20-971

£ 145.00

OI20-951

£ 145.00

OI20-981

£ 55.00

OI20-981

£ 11.00

OI20-980

£66.00

Allocation of Sales andAdmin. Overhead

Solution in Movex

• Subcontracted items are now included in the new files and programs for order costing

• View 04 in (CAS310) is reserved for subcontracted items

• Issue to subcontractor done under new accounting event PP40 (v11 MM10)

• Receipt from subcontractor done under event PP10 (operations) and PP30 manufactured item

• Order costing done under new event CA25 (v11 no order costing)

•Old programs used for subcontracted items deleted: (PPS225), (PPS850) and PPS855)


Changed accounting for subcontracted items


Make it possible to create cost accounting transaction (accounting event OI20) for customer order lines with direct delivery (line type = 2)

Make it possible to control whether cost accounting transactions are to be created for customer order returns coming from (OIS390)

New possibilities in cost accounting for customer order


Solution in Movex

•Possible to define per customer order line whether cost accounting transactions should be created (OIS101/G).0 = No1 = Yes

Various Changes inCost Accounting

New possibilities in cost accounting for customer order

•Default value taken from dispatch policy(MWS010/F) parameter 200

Solution in Movex

Possible to use Open Related/Dsp invoices (option 11).

For customer order invoices (event OI20) and service order invoices (event SO20), program (ARS200) is started

For purchase order invoices (event PP20), program (APS200) is started

Various Changes inCost Accounting

Improved analyses of internal account entries

Solution in Movex

Possible to use Open Related/Dsp lines (option 12).

For purchase order lines (event PP10 and PP20), program (PPS220) is started

For customer order invoices (event OI20), program (OIS356) is started

For service order invoices (event OI20), program (SOS350) is started


Improved analyses of internal account entries


To start building the base for true activity-based costing

Long-term goal is to harmonize cost driver in product costing and cost variables in cost accounting

The resource driver will be the base when making allocations for internal charges—see application requirement (CAS013)

Also the base for enhanced functionality in cost center accounting area (CAS200)

Possibility to automatically calculate cost rates and, for example, transfer them to product costing

First step is to replace the cost variable with resource driver in cost accounting

Introduce resource driver in cost accounting

Introducing Resource Driver

What Is a Resource Driver?

The link between resources and activities.

Determines an activity’s unit cost

Activity

(Process supplier invoices)

Resource 1

(Labor)

Resource 2

(Floor space)

£15/hour

0.10/hour

15 * 0.10 = £1.50

£200/square meter

0.01/square meter

200 * 0.01 = £2.00

Resource driver

(Labor hours)

Resource driver

(Square meters)Introduce resource driver in cost accounting


How to Set the Rate?

Budget labor cost= Budget rate

Budget labor hours

Actual labor cost= Actual rate

Actual labor hours

Financial budget

MRP

Operation transactions

General ledgerIntroduce resource driver in cost accounting


Average cost prices can be changed as they are today or historically

Accounting entries can be created for both inventory and cost of sales

Sales statistics can also be corrected where the average price is adjusted historically

Solution in Movex

Changes in Inventory Reconciliation

Changes in average cost history

Solution in Movex

Two new programs for display of average cost, (CAS370) and (CAS371). New file FCAAVP.

The transaction type is displayed and all information about the transaction is saved

The original acquisition cost is always saved

If the acquisition cost is changed, a proposal can be printed before recalculation


Two new report layouts:

Long item description

Report with totals only

Selection on “accounting control object”

More options to evaluate inventory balances by price type:

Inventory accounting method

Costing type, subtotal and date, substituting costing type

Sales price from item file

Sales price from price list

Solution in Movex


New printout for inventory reconciliation

Solution in Movex


Customer VAT

registratio

n no. on

delivery address

Movex Financial

Integration

For INTRASTAT Reporting



Summary

The OPM group would like to thank all our colleagues in IRD who have assisted in the v12 developments that have increased the level of financial integration within Movex.



The End

Documents

Movex Version 12 Financial Integration. Agenda Movex V12 Financial Integration Background Integration Requirements New Function for Invoice Matching Highlights