Costing and finance

A cost rollup connects a product, bill of materials and routing to a reviewed cost run. Cost standards separate material, labor, overhead and outside processing costs. Each version has an effective date and a Pending, Current or Superseded state. Journal entries and their lines carry the resulting accounting evidence by account. Accountant uses accounting periods to establish where a posting belongs and whether that period can still accept it. Every posting review should start with the originating effect and the applicable standard.

The movement-posting workflow is the single journal owner for material movements. It uses the stored movement identity rather than a human-readable order number to prevent another live posting for the same effect. Cost activation and payment authorization remain separate review decisions.

• Review a pending standard. Cost rollups advance from Pending to Reviewed before Activated. Check each run’s bill and routing references against the engineering definition under review.
• Inspect the journal evidence. Journal entries retain reference type, source record identity, total debit and total credit. Journal lines hold the account, debit and credit for each posting.
• Control the posting period. The accounting period’s start and end dates define the posting window. Locked state blocks further posting until the agreed attributed reopen action permits it.

Agree the chart, posting mappings and cost-element review. Confirm the effective standard used for each event and the revaluation review when costs activate. Name an independent Approver for payment runs and the other decisions that require review. Set up bank confirmation or a group-ledger export as connections with an agreed mapping and reconciliation owner. Prepare a cost change and a period-end movement together so finance can explain which valuation and posting date apply.

Accountant prepares a pending standard after a component change. The rollup points to the reviewed bill of materials and routing, and the cost elements can be explained from that definition. The relevant reviewer checks the cost before activation; a draft engineering definition must not be treated as the approved production standard. The rollup retains the revaluation journal reference when activation produces that effect.

A later completion movement reaches the posting action. The action resolves the intended open accounting period and current valuation, then records the balanced journal once. Repeat the same event and compare the journal references: no second live posting should appear. Lock the period and retry with a new event dated inside it. The command must be refused until a named actor uses the permitted reopen action. Before accepting the configuration, reconcile Inventory Standard Value with the relevant posted accounts and explain any timing or posting differences.

• Unposted Journal Entries — Draft journals with source references and debit and credit totals.
• Pending Cost Rollups — Unreviewed cost runs with their engineering references.

Purchase request to payment follows payable approval. customer order to cash follows receivables. Engineering change to effective revision establishes the cost review’s source definition.