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- Cost Accounting
- Who it's for
- Manufacturing cost teams
Manufacturing cost teams
For a product cost review, build the standard estimate against the product cost object and collect actual charges in the relevant pool. Use the same organization and account conventions in both records so the variance can be inspected against its source records; use the ledger reference to check the journal separately.
How Cost Accounting is set up for you
Product baseline
Standard cost lines holds the element quantities and rates used in the estimate.
Pool ownership
Cost pools identifies the category and organization responsible for an indirect charge.
Variance review
Cost variances links the issued baseline to an actual posting for review.
For a product cost review, build the standard estimate against the product cost object and collect actual charges in the relevant pool. Use the same organization and account conventions in both records so the variance can be inspected against its source records; use the ledger reference to check the journal separately.
Start with one product cost object, one active pool and one open period. Cost Accountant issues a baseline, enters a real charge, and Cost Controller approves it. Variance Analyst checks the linked difference before release. Finance Reviewer then checks the operation receipt and journal reference. Keep the source product code consistent with business partners so later estimates can be compared without a naming guess. Review the [cost setup process](/cost-accounting/processes/cost-setup) before entering the first case and [implementation](/cost-accounting/implementation) before moving source records into regular use.
For the first review, keep the estimate record number, actual posting number and variance number together. Have the decision owner compare the charge to its source lines, then ask the finance reviewer to locate the operation result and journal reference. A corrected source should follow the same route so the team can explain both the original and revised amount.
Features to start with
Roles on the team
- Cost Accountant
- Prepares standard estimates, actual postings and journal entries.
- Cost Controller
- Reviews actual postings and records the approval decision within assigned authority.
- Variance Analyst
- Reviews linked standard and actual cost and releases scheduled variance records.
- Finance Reviewer
- Reviews period status, ledger balance and retained decision evidence.
- Cost Master Owner
- Maintains cost pools and business partner cost objects for the organization.
Set up Cost Accounting your way.
Start free, then use Proto to change fields, steps and approvals before your team goes live.