Risk

FRA justifies the usage of manual costing vs a reference list validated by plant manager and GCCO, controls inventory revaluation and analyzes variances   

Process description

Variances of production costs are analyzed monthly to ensure inventory valuation and cost of sales accuracy

Control description

FRA:

1.  WP1 description:

    1. compares list of manual costing vs result of ZWOCO50 transaction

    2. analyzes product costing variances month over month and checks that there were no blocking errors (CK40N reports)

    3. analyses variances (actual vs target) with the variable & fixed cost split (ZWPP_MCKOST or IMEP BW reports)

    - ZWOCO050 file with comments

    - CK40N checklist + CK40N analysis template

   
   

2. PF1 description:

    1 . Analysis of material cost variances Month N vs Month N-1 above 10K Materiality (ZZM_MAT_VAL_COMP report) r ZWPP_MCKOST or IMEP BW reports) with comments