Process: RtR

Macro-Process: Costing / costing model architecture

Scope: Level 1

Risk

Wrong fixed cost absorption in inventory, plant costing model do not comply with group rules   

Objective

FRA updates plant costing model 


Process description

Costing is necessary in financial reporting to determine cost of sales and inventory valuation.

Control description

FRA fills in template for standard rate calculations and assessment cycles and asks validation from GCCO and plant manager.

Former Controls

IAC 03.09.04.01

Control owner

FRA

Due date

November D10

Frequency

Control evidence

IAC 01.09 Costing model.xlsx

validated by GCCO and plant manager

Guideline

Prerequisite

  WP1 Worldwide

OP.xxx applicability


Product costing 

Area:  Responsability Area

previous Operation(s): (warning)

Rules & Glossary: Costing - Rules Costing - Glossary Costing - SAP Operations

Risk : Slow turn inventory reserves do not comply with group rules

Objective : FRA updates every year slow turn inventory reserve calculation procedure for his/her plant(s)

Process description : Program ZWFA12A is run at the end of every quarter to provide a slow turn inventory reserve proposal. Strategic parts are parts whose unavailability would lead to a significant loss in OEE (Overall Equipment Effectiveness).

Strategic parts are not depreciated.

Control description : FRA fills in check lost

 

Guideline


 

   

Reference

 

Next Operation(s): (warning)