Product Costing and Manufacturing Accounting Features

The JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems provide flexibility to accommodate the manufacturing environment. Maintaining accurate and complete records of the value of inventory is one of the major concerns of most businesses today. Keeping unprofitable stock or using inappropriate costing methods for inventory can quickly deplete profits.

The JD Edwards EnterpriseOne Product Costing system enables you to store and retrieve cost information. It also helps you to manage the costs by providing information to the company's business plan.

With accurate product costing, you can evaluate these manufacturing processes to determine how they affect a company's profitability:

• Manufacturing cost accounting (direct labor, indirect labor, and overhead).

• Product design (design and manufacturing engineering).

• Accounting (gross margin by product line or item).

After you establish costs in the JD Edwards EnterpriseOne Product Costing system, the JD Edwards EnterpriseOne Manufacturing Accounting system tracks the costs, reports variances, and posts manufacturing transactions to the general ledger.

This table describes some of the features and benefits of these systems:

Feature	Description
User-defined cost extras or add-ons	Define and maintain an unlimited number of cost components for tracking specific costs, such as freight, taxes, duty, and electricity.
User-defined cost rollup methods	Define an unlimited number of cost methods to use in cost simulation analyses.
User-defined cost factors and rates	Allocate cost factors and rates to a specific item. These factors and rates are used with cost extras or add-ons to calculate additional costs.
Cost variances	Print a set of reports to compare old costs with new costs before implementing any changes.
Bill of material rollup	Calculate the total material cost by retrieving the bill of material for all items and adding the total cost of the components.
Cost simulation	Run a complete simulation of costs before any live data is updated as the frozen cost standard.
Multifacility costing	Maintain cost information at the branch/plant level to allow for cost variances at different locations for identical manufactured items.
Variances	Review these kinds of variances: Engineering. Planned. Actual (material and labor). Other.
Journal entries for variances	Create detailed or summary journal entries for work order or rate schedule variances.
Journal entries for work order or rate schedule transactions	Create detailed or summary journal entries for work in process or completions.
Automatic accounting instruction (AAI) tables	Charge amounts to specified accounts.
Reports	Print reports listing detailed costs and variances for work orders or rate schedules.