As a part of its management policy, a large company producing spare parts and components applied the “standard costing” method to the purchase of components and the cost of finished products. However, the existing accounting system, Client 1C UPP, did not imply the possibility of data formation for the analysis of deviations, all calculations had to be conducted in Excel, and therefore they were not as detailed as desired, were performed at the final level, and took a lot of time.
When the client transitioned from 1C UPP to 1C ERP, SCHNEIDER GROUP made two additional improvements. One of the modifications allowed for a detailed analysis of price deviations for components that were used in the production of finished products, and the other allowed analysis of deviations in the cost of finished products.
The ability to obtain prompt and detailed analysis of deviations allows making necessary decisions in time, not incurring unjustified additional costs, managing and controlling emerging risks, and predicting further development of the situation. Data receipt automation also saved a considerable quantity of time spent on manual calculations, sped up decision-making, and avoided errors in calculations.
These structures will be useful both for production companies and any other companies that keep records in 1C.