A METHOD FOR OPTIMIZING PRODUCTION AND LOGISTICS IN A PRODUCING ENVIRONMENT, A COMPUTER PROGRAM FOR

专利摘要:

公开号:BE1020914A4
申请号:E201300456
申请日:2013-06-28
公开日:2014-09-02
发明作者:Katleen Vermeire；Hoe Mark Van
申请人:Holon Bvba；
IPC主号:

专利说明:

A method for optimizing production and logistics in a producing environment, a computer program for this and a computer operating according to the method
Technical field
The present invention relates to a method and a computer program for optimizing production and logistics through financial management reporting within companies. She implements a new technical working method for the correct registration and reporting of complex financial business information.
Background
The current state of the art with regard to management reporting includes either a summary of period costs and revenues according to a certain classification (Romanesque model & Belgian GAAP) (see table 1) or a more cost-of-sales oriented reporting (Anglo-Saxon model) (see table 2). Both forms of reporting, however, lack a methodology for assigning the internal responsibility of these results. Often, thanks to ERP systems, the result is assigned to countries, customers and / or products, but these are external characteristics (see Table 3). There is no reporting model in which these profit and loss accounts are allocated to internal departments.
Moreover, these current models are incorrect (period accounting) or incomplete (cost of sales) in solving the time lag. This is because there is a time lapse between the costs incurred and the revenues that result from this. This time difference runs over the entire chain: purchased raw materials first go to stock, are later used in production, come back into stock via the finished product that is then finally sold. That takes time. This is not taken into account in the accounting period: today's purchases are reported together with today's sales. But even in the cost of sales reporting people do not go as far as, for example, to view marketing costs as cost of sales and to allocate the right marketing costs to the right sales. In the current models, we also see the wrong characteristics appearing on certain value fields. Production costs and purchase costs are reported per customer, and even costs of unused capacity are allocated to customers and / or products. Moreover, the existing cost of sales reports do not match the statutory accounting.
The implementation methodology of the present invention offers a solution to these problems. It requires correct registration of the figures, at the right time, on specific carriers (bills and cost objects). Finally we arrive at a profit and loss account per internal department, but each with its own relevant characteristics.
Summary
In a first aspect, the present invention provides a method according to claim 1. More specifically, the present invention provides a method for optimizing production and logistics in a production environment, comprising summing period costs and period revenues and the related calculation of a global commercial result, with the characteristic that the commercial result is broken down into the sum of partial results, whereby each partial result is assigned to an internal department.
These partial results preferably include the production, purchasing, marketing, capacity and logistical results.
The results, both global results and partial results, are booked on the basis of a specific support for creating a profit center per result, with specific characteristics related to this result being provided for each result.
Preferably, each result will include both revenues and costs. More preferably, these revenues and costs are codified separately.
In particular, a standard rate is also set for internal costs and revenues, charged to the various partial results and / or commercial result. A standard tariff cost for marketing and logistics will preferably be provided for the commercial result, while this standard tariff is codified as revenue for the marketing and logistics result.
In particular, the partial results can also be further broken down. Preferably, the commercial result is optimized at the level of the partial results.
Preferably, the results are calculated using a data implementation system linked to a computer.
In a second aspect, the present invention provides a computer program according to claim 11. More specifically, the computer program will provide a data implementation system coupled to a computer for optimizing production and logistics by calculating a global commercial result, characterized in that the data implementation system provides means for introducing partial results whereby each partial result is assigned to an internal department involved in the production and / or commercialization of a product or service and where the data implementation system provides an overall commercial result calculated on the basis of these partial results .
More specifically, the data implementation system will provide means for introducing and calculating the method of the present invention.
The computer program according to the present invention will preferably be provided on a carrier.
In a final aspect, the present invention provides a computer according to claim 14.
Figures and tables
Table 1 shows a method from the state of the art, in which a summary of period costs and revenues takes place according to a certain classification (Romanesque model & Belgian GAAP).
Table 1: reporting period. These are accounting accounts: minus stands for credit, plus stands for debit.

Tables 2 and 3 show a cost-of-sales oriented report (Anglo-Saxon model) from the state of the art.
Table 2: cost of sales reporting. This is more management reporting: costs and revenues are positive.

Table 3: integrated cost of sales reporting. Costs and revenues are positive.

Tables 4a-4c give an example of a transition from an integrated result to a commercial result via standards according to the present invention. Costs and revenues are positive.
Table 4a: Current integrated result.

Table 4b: Standards.
Table 4c: Commercial result

Table 5 shows an example of the production result of the present invention.
Table 5: the production result. Costs and revenues are positive.
Table 6 shows an example of the purchase result according to the present invention.
Table 6: the purchase result. Costs and revenues are positive.
Table 7 shows an example of a capacity result according to the present invention.
Table 7: capacity result. Costs and revenues are positive.
Table 8 shows an example of a complete profit and loss account according to the present invention.
Table 8: the destination-oriented profit and loss account. Costs and revenues are positive.

Tables 9a-g show an example entry with accounting accounts where min stands for credit and plus stands for debit. The accounts are subdivided into purchase results, production results, capacity results, sales results, logistics results, marketing results and overhead results. Note that some numbers are related to this, such as "fixed cost absorption" for production result and capacity result, "logistics" for sale result and logistics result, "marketing" for sale result and marketing result and "sales overhead for sale result and overhead result."
Table 9a: purchase result.
Table 9b: production result.
Table 9c: capacity result.
Table 9d: sales result.

Table 9e: logistics result.
Table 9f: marketing result.
Table 9g: overhead result.
Table 10 shows account management according to the Belgian accounting system adapted to P&L (profit and loss) by destination.
Table 10: the account control according to the Belgian account system adjusted to P&L by destination.

Figure 1 shows a workflow chart "P&L by Destination Implementation Chart" and illustrates how the P&L is implemented.
Figures 2 and 3 show the budget flow that defines standards.
In the chart in figure 4 we see that these standards are also used in the current bookings.
Figure 5 shows how one achieves results such as the main result with a current turnover, master result that the commercial result as most companies know.
Figure 6 shows an example of a "marketing profitability report".
Figure 7 shows a graph of a marketing result.
Figure 8 shows an example of a commercial result.
Detailed description
The method of the present invention is ideal for mixed production & sales companies in a make-to-stock environment, although it is also implementable in certain forms of make-to-order.
We distinguish the following (partial) results as follows: • The overall commercial result • The production result • The purchase result • The logistics result • The marketing result • The capacity result
The essence of every result is that it has both revenues and costs. The innovative is mainly in the fact that each department has revenues, which are recorded directly in the accounts and are also visible there, without harming basic accounting rules or IFRS rules.
The basic result, the master result, is the commercial result. In this result, profit is expected, while in other results the overall goal is a zero result. In the commercial result, we compare the current turnover (including discounts) with the costs, which are all taken as standard. The COGS is the standard price of the product, also the price at which the product leaves the stock. But also the other cost types: logistics, marketing, R&D and administration are assigned to a standard price, a standard price that is achieved from budgets. By doing that, the budget results in all partial results being zero and, in terms of budget, all profit & loss is in the commercial result.
The commercial managers acknowledge the figures from the commercial result because they know the standards in advance and have to generate a margin for them. They are also judged on that.
In the production result, the yield is formed by multiplying the quantity produced by the same standard price. That is also the value with which the stock is increased if all materials are valued at standard price. The current costs of production are compared with that yield and thus form the result for which production people are responsible.
The current costs are • The material costs: the currently used quantities at standard prices.
• The variable production costs: current labor costs, subcontracting, quality, environmental costs, energy, ...
• The fixed costs: maintenance, depreciation, production overhead ... These are only charged pro rata to a normal capacity utilization. The production receives the fixed costs of a normal capacity because they are not responsible for over or under investment.
The capacity result, just like the revenue, is passed on to the production of those fixed costs. The current fixed production costs are included as a cost in the capacity result and only the part of the fixed cost that is used effectively is borne by production. That is the revenue from the capacity result (and the cost in the production result). If, due to over-investment, three machine lines are installed while only one is used, then we cannot pass on the cost of the two unused lines to production, but we include that in the capacity result. So we see the cost of unused capacity there.
The purchase result has the actual purchase cost as booked in Belgian and Southern European GAAP, while the revenue is the stock increase that accompanies the purchase. Since we value all materials at standard, the stock at that value will increase (yield) while the costs are the current costs.
Below the margin we can still create the logistics, marketing and overhead result. The methodology is the same everywhere: via rates that have been determined in the budget, we currently add standard surcharges for these costs in the commercial result. These costs in the commercial result constitute the income in the relevant partial results. The current costs of logistics, marketing and overhead are set against these revenues. The difference covers the variance and the time lag.
Technical methodology
The concept discussed in the previous section seems fairly simple at first sight. To obtain the required data, however, a specific registration process of the company data is required, a process that must be consistently continued from the beginning and throughout the entire company.
The technique consists of a combination of three parts. First of all it is important to have carriers for every result. Those carriers are cost objects on which the account from the accounting is posted. So we add information here with every booking. Every booking will belong to a result and a result is technically represented by a profit center. So we are going to make the profit center structure according to the internal departments, so according to the partial results of the P&L by destination. It is essential that you can report on those profit centers with the right characteristics. We must be able to report on customer, product and organizational characteristics at the commercial profit center. All these characteristics are on the invoices sent. These form the basis of the commercial result. At the production profit center we must be able to report per production line, per factory, even per finished material. We must be able to report on the purchased profit center per material purchased, material group, supplier.
Secondly, we have to manage additional technical accounts to be able to clearly distinguish between revenues and costs within those results. Wherever materials go in and out of stock, we do so through the inventory change account. For finished products the following applies, for example: • Stock increase purchase: account 7131 => purchase revenue • Stock increase production: account 7132 => production revenue • Stock consumption in production: account 7133 => production cost • Stock consumption in sales (COGS): account 7134 => cost of sales Applied to the Belgian account system, we see the accounts in table 10. The codification as such is not important, as long as we have different accounts for the 4 essential goods movements.
In the commercial result, we therefore offset the sale against the cost of sale (account 7134), In production we offset the production revenue (account 7132) against the cost of production (current quantity, standard price) (account 7133) and all other non-material costs: the fixed costs at current value, the variable costs charged by the capacity result as with the use of normal capacity.
For the calculation of costs from one result to another while there are no material movements (marketing, logistics, fixed production costs, ...) we use secondary accounts that debit and credit the same amount, but at other profit centers.
We apply this technique for the logistics result, the marketing result, and the capacity result.
Thirdly, the value that is booked is important. For each sale, the commercial result receives a cost for marketing and logistics through rates. These are standard rates that have been determined during the budget round. The rates may depend on organizational, product or customer characteristics. These amounts are the costs for the commercial result and the revenues in the marketing and logistics partial results. The amounts are booked on secondary accounts (ie outside the statutory accounting system). The proceeds go to the credit of the partial result and the cost comes to the debit of the commercial.
For all material movements, the value of the entry is automatically a standard value because we value all stocks at standard value. This means that all materials must be valued to standard from the start. Everything remains IFRS compliant by updating the stock to IFRS value at the end of the period or fiscal year. This update is also separated into a separate result.
It is therefore essential: • All material movements can be booked at standard price • All cost calculations between the results can be booked to standard • Base the standards on the budget • Different cost objects, profit centers, to be used for each result.
• Adjust the account management so that we can show the revenue and costs of each result.
If we register all movements, costs and revenues in this way (an ERP system is unquestionably needed for this), we have all the information to arrive at a destination-oriented profit and loss account. The total result of the company is thus divided by responsible classification of the accounts at the various profit centers into responsible departments.
Example
The invention will now be further elucidated on the basis of examples, without however being limited thereto.
In the example below we show how we can present current integrated results (Tables 2 and 3) differently in a destination-oriented profit and loss account by working with standards, split inventory change accounts and cost objects per result.
Tables 4a-c show the transition from an integrated result to a commercial result by accounting for all costs to standards. By doing that we get partial results production (table 5), purchase (table 6) and capacity (table 7). We see that the revenue in the capacity result (table 7) is the fixed cost in the production result (table 5): 241600 euros.
The total current margin of 168035 in Table 4 has become a commercial margin of 223845. The difference, 55810 euros, is explained by the production result -17681, the purchase result -615 and the unused capacity -37514 euros.
The complete profit and loss account (table 8) shows the logistics, marketing and overhead results. In addition to the variance, these last results also contain the time lag. For the results above the margin, the time lag (different quantities in purchase, production and sales) is in the stock itself. Tables 9a-g show how the correct use of accounts, standards and cost objects provides sufficient information to create the destination-oriented profit and loss account, as shown in table 8.
In addition to the above results, we can also distinguish: • Further detailing of the results below the margin (HR result, IT result, finance and controlling result, R&D result, ...) • Revaluation result: where the inventory revaluation is booked when adjustments are made to the standard or update to IFRS value.
• Planning or transfer result: if production plants each have their own standard that then deviates from the commercial standard. The results that are then achieved during stock movements between those factories and the distribution channels are a responsibility of the planning who decides where to produce.
• The inventory updating result: where the cost or revenue of possibly adjusting the standard to an actual value is posted.
• The financial result: with costs and revenues of a financial nature. These results are created, not so much to have these results in themselves, but to keep the other results pure in terms of responsibility, while still keeping up with accounting.
Implementation
The workflow in Figures 1 to 4 ("P&L by Destination Implementation Chart") illustrates how the P&L is implemented. The chart in the first figure, the implementation flow, shows the steps required to move to a P&L by destination. In addition, two major steps, the budget cycle to arrive at standards, and the current cycle that then uses the same standards, have been fully worked out in separate charts. The budget flow that defines standards is shown in the charts in Figure 2 (above the margin) and 3 (below the margin). It is essential that standards come from this budget. In the chart in figure 4 we see that these standards are also used in the current bookings. Combined with the right profit center derivation and the split of the accounts that book the stock changes, we obtain a P&L (profit & loss) by destination.
This method is not just another way of reporting. It is a total concept where the account system must be adjusted, the stock valuation must be done to standard and the right cost objects must be posted at the right time. Only then can the correct reporting be created afterwards, based on responsibility. This reporting always shows costs that are unequivocally linked to the revenues, regardless of the period in which those costs and revenues are actually booked.
In a second and third aspect, the present invention comprises a computer program and a computer provided with such a computer program, provided with a data implementation system coupled to a computer for optimizing production and logistics by calculating the global commercial result. In particular, the data implementation system will also provide means for introducing and calculating the method according to the present method.
In the present invention, a data implementation system becomes any system or methodology that allows the active entry of data and information to calculate and derive a global result or partial results based on the entered data or information.
Preferably, the data implementation system will provide means for introducing partial results whereby each partial result is assigned to an internal department involved in the production and / or commercialization of a product or service and where the data implementation system calculates a global commercial result based on of these partial results.
Further description with a.d.h.v. a first example:
In an organization the following can be stated: "You have an apparently well-functioning ERP system with good support for the logistics processes. You can purchase, produce, deliver and invoice (luckily but ...). The bookkeeping even follows, largely automatically But is that now the result of such a large investment in ERP
Did you not expect anymore
Yes, you expected • Real-time commercial analysis.
• Correct margin analyzes.
• Information about profitability of customers, products, factories, production lines.
• Reporting clearly showing the responsibility of the deviations.
• A total reporting that is consistent with the statutory reporting.
• Structural analyzes instead of ad hoc analyzes.
• A much shorter closing procedure.
But none of that has been achieved. The consequences can be significant: • Management of a company without correct information.
• Wrong (dis) investments in customers, products, factories.
• Maze of Excel reporting, in addition to ERP reporting.
• Search for confidence in your own reporting.
You are disappointed in the implementation of the ERP package. Your expectations were much higher. You thought you would get an overview of KPIs and P&Ls in sub-areas with flashing lights where things go wrong. You also thought that this information would come from the system automatically and not after a week of hard work from your controllers.
In the following, we will try to answer these questions. "
Controlling is the collection of financial and quantitative data that they convert into information and report it in such a way that it amounts to taking the right decisions - to positively influence the results of each business unit - and thus to improve the overall result
The definition of controlling is important to be able to situate the P&L by destination in the general controlling landscape.
Management reporting is - displaying values - on a number of characteristics or combinations of characteristics
Reporting itself, a sub-task of controlling, gets this very simple definition, which is important, because many errors are made in reporting by putting the wrong characteristics on the wrong value fields.
Too little reporting is damaging. Many companies think that they have too few reports to manage the business. In some cases it is, but it is not essential to have as much reporting as possible. It is crucial to present the correct reporting as simply as possible.
Too much reporting also hurts. Too much reporting is not read. Companies where managers receive a book on their desk every month with loads of figures in it (usually data instead of information). What is essential in our story is that the right report ends up in the right place. Managers must recognize themselves in the numbers and acknowledge them.
The basic problem "Cost of sales" vs "Period accounting"
A product costs 30 euros: 10 materials, 10 labor, 10 overhead.
We produce 10 # and sell 10 #:
We produce 12 # and sell 10 #:
This is the most essential distinction in reporting. Where in Romance countries people usually do period accounting, in the Anglo-Saxon world they use the cost of sales approach.
Companies in Belgium are legally bound to bookkeeping, but many companies want a view of their company through the cost of sales principle.
If there are no stock fluctuations over the period, both views give the same report. However, as soon as one sells more or less than one produces, or if one buys more or less than one uses in production, the reports deviate.
The period accounting shows the real costs of the period and gives a mixed picture of purchase costs, production costs and selling costs and revenues are shown together.
The cost of sales accounting only shows the costs of the goods that have been sold, possibly split into components of the cost price of the goods sold.
If one produces more than sells, one in the accounting period puts a part in fixed costs in stock that have not been there.
Tables 2 and 3 show an overview of Greco, which is active in three product groups (α, ß and γ) and in three countries (FR, BE and DE). It is a period report. We see the sales (754,000 euros) among which all costs are listed, including production costs of products that have not yet been sold. We also see the purchase costs of materials that may not have been used up. All of this is compensated by also displaying stock changes, as a global number. All these costs and stock changes together are referred to as COGS (585,965 euros).
The Greco company also realized that they could use weighting to run the business. The stock changes in particular made it difficult to draw conclusions from this report. The company implements an ERP program for this that can give a complete picture of the company and after some time they succeed in generating the right-hand report. They are satisfied because they now see the results on all characteristics (eg EBIT: 68 036 euros) and see current margins (168 035 euros) and results on every combination of country and product group.
Many managers are satisfied with such reports, but we will show in this presentation that this is wrong information.
Why many reports are unusable or even incorrect
Error 1: There is no clear responsibility for the figures. Error 2: The time gap
Error 3: Reporting based on statutory accounting.
Error 4: Random allocations Error 5: No exhaustivity Error 6: No exclusivity
Error 7: Insufficient definition of reporting lines Error 8: Fixed and variable are not synonymous with direct and indirect, to summarize: the reporting cannot be a management model for making management decisions.
The first error is the most important one: we do not see who is responsible for the figures and therefore do not know for whom the report is intended. This is the basic error that the P&L by destination will answer.
The second error is the time lag. In the reports above, production costs are shown together with sales. Marketing costs are shown that will actually only generate sales within a few months. Production costs are shown and the unit volume sold ... Everything is shown in one report because the invoices were received by accident this month. This is a highly underrated error in reporting. The P&L by destination will also meet this requirement.
The random allocations are a variant of the foregoing. Where in the second error one deals carelessly with the period, this also applies to other allocations. Production costs are allocated on the basis of sales volumes, without a causal relationship. One allocates to be able to show that in a detailed way but forgets that it remains data. No information has been generated in this way.
Many reports are not exhaustive: Greco. Combinations of characteristics are made such that not everything is reported. If the reporting consists of DOBS in the BENELUX, Brands in the Netherlands and Special products in Belgium, then it is not certain that we have reported everything. The above example can also not be exclusive, as a special product in Belgium could also be a DOB in the BENELUX, which means that it is counted twice. This seems obvious but is frequently found in management reports.
To properly understand a report, we need to know what is shown in the lines. Clear definitions are often missing. A heading above a column or a row name is often insufficient to know the content. Moreover, if we have good report definitions, then the report has been thoroughly considered.
In management, the distinction between fixed and variable costs is important for margin reporting and breakeven analysis. This is often confused with the terms direct and indirect. A direct cost can also be fixed, while an indirect cost can be just as variable.
"P&L by destination": split the results according to responsibility • Sales result • Production result • Purchase result • Logistics result • Marketing result • Overcapacity result • Non-operational result • Revaluation result • Production overhead result • Sale overhead result • Transfer result • Inventory update result
If we look at responsibilities, we can display different partial results that can be consulted by the different departments.
Sales, production and purchase reports are obvious. What is less obvious is that we are going to make real results with revenues and costs. So also the production will show revenues and even the purchase.
But overhead costs such as logistics, marketing and administration can also produce results, which means that they can generate a profit or loss.
Even the use of capacity can lead to profit or (usually) loss.
A growth path is possible in the implementation of the entire P&L by destination. In general, the first (and most important) step is to split the commercial and production results.
How do we get to those results now See fig. 5. The main result, master result is the commercial result that most companies know. However, in that result, only the (net) revenues are current. We keep all other costs as standard. They are charged with the standards of the partial results. For the COGS we therefore take the standard COGS, the standard value of the effectively invoiced product. The actual is not charged to the sales result but is in the production result. There the current costs are compared with the standard value of what has been produced. That means that all variance in production is also at the expense of the production managers and not at the expense of the commercial people. Moreover, the time lag is fully absorbed by the stock. After all, the COGS is a delta stock account sale and the production income is its counterpart: delta stock production. Both are booked at standard price.
We can do the same with overhead costs (logistics, marketing and other overheads). The commercial result is given a certain standard for each sale, which costs logistics as a revenue item. The effective logistics costs will then be added to that logistics. So that logistical result captures both the time lag (logistical costs come before the invoice) and the logistical variance. After all, it is not the fault of the customer or the commercial responsible that the carrier charges waiting hours for transport. Since we do not work here with a stock of logistics costs, the logistics result captures both the time lag and the variance, which is a distinction with the production result.
We can therefore also purge the production result as such from purchase variations and from capacity under-utilization, two things for which they are not responsible. We divide the purchase again through the stock by splitting the delta stock accounts into consumption at standard (production cost), and stock entry by purchasing at standard (purchase revenue). The actual purchase cost is included in the purchase result as an expense.
Commercial - Production - and purchase result
Table 11
A simple example, illustrated in Table 11, shows how we can split an integrated result into a P&L by destination. We start with a current commercial margin of 90, whereby the COGS is actually formed by taking all period costs, including the total stock variation. If in this stock variation we only take the stock decrease of the delivery, at standard price, then we can report it as standard COGS.
On the other hand, we supplement with a production report where the total produced volume (12), valued to the same standard, shows the production revenue. On the other hand, we then set the current production costs. We see that the initial margin of 90 is actually a commercial margin of 100 and a production variance (partly on other products) of -10.
If we also set the used raw materials to standard value in the next step, then we only see the stock variation of the raw materials at standard value in that line. The actual purchases are then included in the purchase result and compared with the increase in stock at the standard of the purchase. Again, the quantities used and the quantities purchased can differ from each other. In this example, sales and production performed well while the purchase bought too expensive.
Deviation from the standard = generating a result • By using plenty of standards, any deviation from the standard results in a P&L effect.
• If our standards are based on the budget, then any variance with respect to the budget is a result.
• Take care not to confuse variances (compared to budget, compared to standard, compared to last year, ...) with results.
As soon as one deviates from a standard price, one creates results:
In the purchase result, a deviation from the standard is the purchase price variance
In the production result, an additional consumption of raw materials or energy is a direct result in the P&L because the stock build-up of the produced good is standardized while the (higher) current costs are offset by this.
If the standards are based on the budget, such a deviation from the budget is also a direct result. We will also see this clearly in the production result.
The commercial result • The steering elements: - Volume, Price, Mix • The COGS must be standard - Time gap: the purchases made today are for tomorrow's production and the sales for the day after tomorrow. The purchase, production and sales volumes are separate from each other,
Variations in production must be charged to production, not to sellers - Actuals are known too late for daily reporting
What can the sales managers use to pay Certainly on the quantity that they sell, but also the price and on the mix of the goods sold. After all, it is best to focus on goods with a high margin. What the seller is certainly not responsible for is the efficiency of production, the exploding of marketing costs or logistical costs that deviate from what was initially agreed. It is possible to discuss raw material prices but, strictly speaking, the seller has no responsibility for the price of the goods purchased today.
This means that all those costs at standard rates are charged to the volumes sold.
The commercial result of a bread factory
In this simple example (see table below) two products (product groups) are made. The commercial budget is to sell 5000 units each.
We now see that more has been sold. Since this is a P&L by destination, the costs are standard.

The variances are given in the table below:
If we now calculate the three variances for which the seller is responsible, then we can first of all remove the mix variance by releasing the current mix percentage on the budget. By selling proportionally more bread, we get 5 euros more in revenue, purely due to the seller.
We then convert the volumes to current volumes, which earns 11 euros more.
If we also have the prices updated, we only see an effect in the selling price. To achieve that higher volume and better mix, the seller has drastically lowered prices, a loss of 20 euros.
The commercial loses 4 euros in relation to the budget and that is entirely due to him. We see no price effect on the COGS line as it is valued at standard.
The commercial overhead • To guarantee coverage of all costs, we can deduct the current overhead from the margin.
People focus on "correctly allocating costs to customer (groups) and product (groups) • This is to be avoided because of
The current costs are only known at the end of the period => no daily reporting
There is no causal link between the current cost and the commercial characteristics - The time gap or the denumerator effect.
If one wants to correctly allocate current overhead costs to the sales of the month, that is virtually impossible because there is usually no connection between the current costs of that month and the sales of that month. People want to allocate the costs correctly to the right customer, the right country, the right product and the right sales organization, but they forget that the period is so wrong.
And by assigning the actuals to all segments, a heavy "denominator effect" will occur. After all, the current rates will be higher in periods with few sales than in periods with higher sales, so profitability from customer A will depend on sales to customer B.
That is the biggest objection from current cost distribution to sales.
The commercial result: the current commercial overhead
In the example above we see sales in two months, January and February and the total. First in budget then in actual.
In terms of budget, sales are completely the same over the two months and between the two customers. Each customer buys 10 units in each month. The budget overhead is 30 Euro per month and is divided between the two customers.
The same thing happens in reality. However, the invoice from the second customer has been postponed for a month. In January there is still 30 euros of current overhead, but if we allocate to the sales for that month, then customer 1 carries everything, and only because customer 2 is not invoiced on time. In February the second customer then receives two invoices, which means that he is allocated twice as much overhead as the first customer.
If we now look at the total profitability of customers, it is disturbed. Although they have bought exactly the same, their profitability is different.
The commercial result: the standard commercial overhead
If, in the same example (identical budget - same current sales in), we now allocate the overhead with standard rates, we allocate 15 euros (the budget rate) to each sale of 10 units.
By doing this consistently in every period, the overall picture of the profitability of the customer is not disturbed. However, where is that 15 euro current overhead going in period 1 that is not in the commercial result
Derived from the commercial result: the sales overhead result
• Sales overhead result solves everything.
The time aspect no longer plays a role. The time difference remains in the overhead result and is not in the sales result.
The allocation to the characteristics is better, because it is exactly as allocated in the budget.
A suddenly lower volume will not cause the profitability of the customers in question to fluctuate. Each customer is allocated the same amount of overhead, regardless of whether other customers also absorb overhead. The standard rates are known during the month and you can therefore do daily reporting
In the first month we charged 15 euros to the commercial result and those 15 euros represent the revenue from the partial result. The actuals are also booked there. The partial result is therefore a place where the time aspect of the overhead can disappear. Because we have no stocks of these costs, the time aspect here is combined with the actual variance (which is zero in this example).
After all, if the current overhead in the first period was not 30 but only 25, then we would get a sub-result of -10 in period 1. That result would then clearly be a mix of time effects and effective variance. But both effects remain out of the commercial result because neither the customer nor the seller are responsible for it.
The commercial result: the characteristics • All characteristics are relevant because we work with standard rates - Customer-related characteristics o Customer, country, delivered customer, invoiced customer, customer group, interco, zip code, ...
- Product-related characteristics o Product, product group, packaging type, product type, brand, brand / DOB, ...
Organizational characteristics o Company, factory, profit center, sales organization, seller, sales manager, division, business unit, sales channel - Technical characteristics o Invoice date, invoiced by, delivery date, sales order, invoice number, booking period ....
It is precisely because we charge everything at standard rates that we can report on all these characteristics. In previous slides we saw that reporting on specific characteristics is heavily biased if we work with current rates.
Even if we can allocate the overhead to certain products, we cannot yet report them to customers or vice versa because spreading errors are made over time periods. Only working with standard rates ensures that we allocate correctly.
The production result • The controlling element:
Efficiency • What should not affect this result is - Purchase price difference - Costs of over- or undercapacity - Mixing differences
What can we pay the production manager for There is only one code word: efficiency. The more efficient he works, the cheaper he is, and the more results he generates, is also the only thing he has a grip on. Since he himself does not decide what he produces, volume or mix should not influence the result. He also has no control over the prices of raw materials. Only the quantities consumed are his responsibility.
The capacity of its production equipment is geared to historical volumes or to future forecasts. In both cases, the production manager is not responsible for the over or under investment in capacity. That means that he also does not bear the full fixed costs of his capacity.
The production result of the bread factory
The production result is composed by the production revenue and the production costs.
The production revenue is the value (at standard price) of the products produced. We can then split the production costs into materials (raw materials), variable production costs and fixed production costs.
In the simple example of the bread factory, we budget the same production volumes as in the sales result.
We have currently produced more than budgeted, but also more than sold.
There is 3 euro in production profit, 4 profit on bread and 1 loss on sandwiches.
Where do these results come from We elaborate on the variances.
If we calculate the mix and volume variances in the traditional way, we see that the mix and volume variances provide explanations of budget deviations but do not generate any results. The efficiency variation does. The 3000 Euro comes out completely if we compare the current consumption against the standard consumption.
We will zoom in on the efficiency variation in the following table.
The characteristics of the production result • Only the production-related characteristics are relevant: - Product-related characteristics o Product, product group, packaging type, product type, brand, brand / DOB, ...
Organizational characteristics o Company, factory, profit center, business unit, production line, work center - Technical characteristics o Production date, production order ,, booking period ....
We can take over most characteristics of the sales result, except those that are customer related, because the production is independent of the customer. Even in a pure make-to-order environment one can wonder if production inefficiencies can be linked to the customer.
This is an essential element in the P&L by. destinations: set the right characteristics for the right result.
The capacity result • No time gap, but an "eternal gap" • Fixed costs for a certain capacity => not 100% charged to the products if this capacity is not fully utilized • Not even in the standard => unrealistically expensive products.
• If, for example, the capacity is 10 parts and budgeted for 8, we achieve an operating rate of 80%. We then charge 80% of the fixed cost to the product in the standard price.
The time lag in the production overhead is small, but we cannot include all overheads. After all, the fixed costs are related to a certain capacity. If we have a machine park ready to produce 100 while we only budget 75, then we cannot put the full overhead in the standard price of the products, but only 75%. Otherwise the products would become unsaleably expensive.
The cost price of the unused capacity sinks directly to the bottom of the P&L. This can have a major impact, especially in capital-intensive companies. In sectors where the capital intensity is low, we can ignore this result.

In an adjusted budget (8 units instead of 10) of our bakery, we charge 8 euros for production instead of the total 10 euros that is actually effective. There is an operating rate of 80%.
In budget terms, the cost of overcapacity is therefore 2 euros.
In the current world, the fixed production costs are 9.5 euros (an investment has been postponed), while the operating rate does go to 90%.
90% of the budgeted overhead is passed on to the production result, which brings the cost of overcapacity to 9 euros.
If we do a classical variance analysis on that capacity result, we see that the operating rate weighs in on this result, but there is also a price effect of the overhead itself.
The purchase result
• Leading factor: PRICE
• All items must be rated to standard. If the items are valued at MA, there is no purchase price variance but consumer price variance.
- The price variation then lies in the wrong period and with the wrong responsibility
The purchase can only be counted on 1 factor and that is the price at which they purchase. So we have to set a yardstick to settle them and that is the standard. In that case we receive a booking of a current purchase to 11 while the standard is 10, as follows: 600 purchase 10 601 price difference purchase 1 440 supplier 11 300 stock 10 609 stock change 10
The price difference in this constitutes the purchase result. One can see the change in stock as revenue and the 60 bills as costs.
What neither can be booked here is any incoming transport costs, customs costs, payment discounts at the supplier.
What happens if, as in many companies, the raw materials are valued at moving average and the finished products at standard
In that case a standard price is inherently used for the raw materials to be able to calculate the standard of the finished products. Only that is not used to value the stock of raw materials. This means that the P&L effect of an overpriced purchase does not emerge during the purchase. The variance in the stock disappears via the moving average. If we use the material in production some time later, it is consumed again at that moving average (cost) while the finished product is put into stock at a standard that inherently includes the standard of the raw material. So then the variance appears in P&L. So at the wrong time and within the wrong responsibility. ,
The purchase result of the bread factory
In our bread factory we see a price difference for all purchases. The turnover is the stock value and the cost is the current purchase value.
These bookings are simply found in accounting.
The characteristics of the purchase result • Only the purchase-related characteristics are relevant Material-related characteristics o Material, material group, material type, ...
Organizational characteristics o Company, receiving factory, profit center, business unit, supplier, supplier group, ...
- Technical characteristics o Purchase date, purchase order, booking period ....
The characteristics are becoming increasingly limited. We no longer see end products, only purchased products. We certainly no longer see customers, but of course the supplier.
What have we achieved so far • Period accounting system => actual integrated result • Three main results: sales, production and purchase. Each with revenues and costs • We now show the decomposition of the currently integrated result of the Greco company, which makes three materials α, ß and γ in three countries,
First of all, we had a period-based result that was transformed into an integrated result. All costs were assigned to all characteristics. What seemed like a nice report at first sight was useless in practice. We did not see who was responsible for the figures and in the so-called COS view there were costs that had nothing to do with the relevant revenues.
We demonstrated the main results of the P&L by destination on the basis of a small bakery.
Now we continue with the complete decomposition of the company GRECO.
We start again with what we started with, see also tables 2 and 3. From a pure period accounting setup. The COGS line contains current energy labor and opaque stock changes. We cannot see who is responsible for the EBIT of 68036,
After an allocation session, we arrive at the right-wing integrated result in which we see that product range is not performing so well and that alpha in Germany must also be tackled. What that means exactly is not clear.
The decomposition from current integrated result to external result
Total margin = + Externally realized margin + Internally realized margin 168,035 = 223,845 - 55,810 (see tables 4a-c)
However, if we decompose the margin by setting the COGS to standard instead of taking the current purchase and production costs, then we see that the product range is not so bad, but that alpha in Germany is not selling well is. What is more important is that we see that the sales generate much more margin than we initially thought, but that 55810 Euro is lost internally in the company.
... and to internal results
See table 5 with total production result -17,681 euros, table 6 with total price variance -615 euros and table 7 with total cost of overcapacity -37,514 euros, together -55,810 euros.
If we look at those internal results, we see that the 55810 is effectively stuck in very poor product range, relatively normal purchases and an unused capacity that also costs us 37514 euros. The responsibilities are therefore very clearly stated.
We can also apply a variance analysis to the commercial result to see the mix, volume and sales price effects.
The logistics result • Rates can be determined relatively easily for warehouse, loading and transport costs.
- The rates are calculated from the budget (warehouse costs) - Or the budget is calculated on the basis of rates (transport costs) • The commercial result is charged for these rates and this charge constitutes the revenue from the logistics result.
• => the time gap is eliminated => the responsibility is correctly divided
Just as the standard cost of the products is taken for the COGS, we can set up rates for the logistics. We can base this on the market (transport costs from suppliers) and make a budget on it. Or vice versa, we can budget and get rates from it. These rates are charged for every sale to the commercial result. What is reported as an expense there will be recognized as revenue in the logistics result.
There is a big difference here with the purchase or production result. These last two results only contain variance, not a time gap. The time gap is absorbed there by the balance. There is no such thing in the logistic result, so the result contains two deviations: the actual variance and the time gap. That makes an interpretation a bit more difficult.

Starting with the budget sales quantities, we can obtain rates for storage, loading costs, transport costs, transshipment and so on. The multiplication of the rates with the sales quantities gives us the amount that will be charged to the commercial result. That is also the turnover in the logistics result.
In terms of budget, we set the same costs in return. It could also have been different by first making a budget and then calculating rates by dividing the budget by the sales volumes. The choice between both methods usually depends on whether there is outsourcing or the cost is in the company.
In the current world we sell slightly different quantities, but they receive the same rates as budgeted (or standard); The costs that currently come in are transferred against that and that forms the logistical result. In contrast to, for example, the production result, that result is the addition of the time difference and the actual variance. There is no time difference in the production result because it is activated.
The logistic result variances
If we then look at a variance analysis between that logistics budget and the actuals, then it is interesting to show the variance analysis of the sale. Namely, in the logistics line of the commercial result, we have mix and volume effects. No price or efficiency effects since the price is fixed (the standard price) in both budget and actual. What the mix and volume effect is in the commercial result is also in the logistics result. With the opposite sign in the turnover, which ensures that mix or volume does not produce a result in the logistics result, but in the commercial result. The actual efficiency (or is it price ) Is in the logistics result, although contaminated with a timing effect.
The marketing result
Marketing works just like the logistics. We know rates because we conduct marketing for a country or a product (group) or combination. Those rates are also applied topically and as a result we get results. In marketing there is a very clear timing effect:

The marketing result: report
A "marketing profitability report" is shown in Fig. 6.
If we look at the marketing result over a certain period (for example January) we see a lot of costs and few returns). A few months later the picture is already reversed. The marketing is starting to yield and more revenue is being generated. There is a big time lag in this result. But by creating this result we isolate that difference. In the commercial result, normal marketing belongs to every sale.
The marketing result: graphic
This becomes very clear when we plot it in graph (fig. 7). The costs are incurred in the beginning, and only partially absorbed by the poor sales. A few months later, the sale picks up. The marketing result is therefore first very negative and later very positive. The time lag is temporarily isolated in this result, so that the commercial result remains reasonable and does not cause extreme distortion.
What would the commercial result have been if we had charged all marketing to the sales when the marketing invoices were posted
OverView
See, for example, tables 4a-c.
We have now seen the main results. There is a distinction between results above the margin and below the margin because of the stock that absorbs the time effect, which is no longer the case below the margin. When we return to Greco, we see the period-based report that went over to an integrated report in an erroneous manner.
By working on standard everywhere, both for COGS and for rates, we achieve a correct interpretable result. The EBIT of 68036 (Table 4a) is actually 93045 (Table 4c) due to the commercial. If we then add the other results, we arrive at the P&L by destination.
This commercial result may be reported on all commercial characteristics, the figures are conceptually and mathematically correct.
See now Table 8, further commented below:
Finally we arrive at the P&L by destination where each responsible gets his own report with the correct characteristics on each report. The higher the report, the more characteristics (the reporting triangle), the lower the P&L, the fewer the characteristics.
And what ensures the integrity of the data is that the end result is just the same as in accounting. It is a re-classification of the bills and cost objects.
Possible other results • Sales result · Sale of overhead result • Production result · Revaluation result • Purchase result · Production of overhead result • Logistical result · Transfer result or • Marketing result planning result • Overcapacity result · Inventory update result • Non-operational result
The results above are discussed on the left, but there are others.
In addition to marketing and logistics, there are other sales overheads (SG&A). We can report these separately in the sales overhead result that follows the same principles as the logistics or marketing result.
The revaluation result is necessary because we work with standards. If we recalculate the standards (at least once a year) then the profit or loss goes to this result, again because of the responsibilities that we want to keep pure.
We stated that the production overhead result is less necessary because the overhead is close to the production volumes in time. Nevertheless, we can still separate that here, always according to the same principles, with standard rates.
The transfer result or planning result occurs in the specific case that several production plants each have their own standard while the sale works with one (political) standard. The difference between the two standards is at the expense of the planning that is best placed in the cheapest factory.
The inventory update result reflects the profit or loss by valuing the inventory at the end of the period or at the end of the year to an optimal legal or fiscal level. Can also be done by simply updating the stock and using the current purchase and production price to revalue the stock. In any case, those costs or revenues may not pervert the other results.
Finally, we still have the non-operational result in which the financial costs and revenues end up.
It is essential that every result has effective costs and revenues and a responsible person.
P&L by destination and ABC
• Integration of Activity Based Costing in the P&L by destination - ABC helps the P&L by destination by making the absorption causal.
- It remains, however, that ABC must also work with standard rates and may not charge actuals.
• What can the classic ABC fail The time gap - The cost pool that is distributed via cost drivers or time based are the current costs - Assigning current costs to characteristics generates incorrect information. The causal relationship sometimes crosses the periods.
- ABC alone is not sufficient for the separation of responsibilities.
What does ABC do with the overhead - Set 10 euros current overhead where ABC attributes it to product range while these are the sales
o Option 1: assign to sales => country incorrect, wrong time gap
o Option 2: post as a separate line => no more cost of sales reporting and many unallocated characteristics
o Right option: use ABC to allocate standard rates.
The production result: the fixed production costs • Here too we have the choice to display current overhead or standard overhead in this result.
• What were the reasons for the commercial overhead
There is no causal link between the current cost and the commercial characteristics o Given that there are fewer characteristics, this plays less role.
The time gap or the denumerator effect o This does not really play a role because the overhead is closer to the actual production.
The current costs are only known at the end of the period o Not relevant here because production results are not required on a daily basis.
P&L by destination and MTO, scenario 1 • Engineer-to-order
The good to be produced (with BOM and routing) is completely custom-made and never comes into stock.
The sales order forms the basis for collecting the costs against which the revenues are compared.
o No stock movements on finished product
• P&L by destination is possible to a limited extent.
Sales and production cannot be separated, but that does not mean that other results can be shown separately.
P&L by destination and MTO, scenario 2 • Variant configuration
The produced variant comes on stock after production, although linked to the sales order. The stock is not freely available but is already linked to the relevant customer.
- The material exists in this scenario, but the BOM and routing are adapted to the variant.
This is typical in the automotive industry.

• P&L by destination possible.
- Sales and production can be split.
- The standard can only be calculated at the last minute (if the variant is known).
P&L by destination and MTO, scenario 3 • Produce or assembly to order.
This is a standard product with BOM and routing.
- However, the product is produced exclusively at the request of the customer. After production it goes into stock, a stock that is linked to the customer. The schedule is the same as above.
• P&L by destination 100% possible.
Scenario 3 is in no way different from the make-to-stock (MTS) flow, with regard to the P&L by destination. Production and sales can be neatly separated from each other via a pre-calculated standard.
P&L by destination and fluctuating raw material prices • But what in environments where raw material prices fluctuate greatly - release budget standard - recalculate standards based on those new raw material prices.
- sales result against a current standard (is not current price.
• This principle not only applies to raw materials, but also to logistics costs, marketing and overhead.
Instead of budget rates, we can use market rates here that fluctuate.
• Much depends on the market situation.
Further description with a.d.h.v. a second example:
In an organization the following can be stated: "You have an apparently well-functioning ERP system with good support for the logistics processes. You can purchase, produce, deliver and invoice (luckily but ...). The bookkeeping even follows, largely automatically But is that now the result of such a large investment in ERP
Did you not expect anymore
Yes, you expected • Real-time commercial analysis.
• Correct margin analyzes.
• Information about profitability of customers, products, factories, production lines.
• Reporting clearly showing the responsibility of the deviations.
• A total reporting that is consistent with the statutory reporting.
• Structural analyzes instead of ad hoc analyzes.
• A much shorter closing procedure.
But none of that has been achieved. The consequences can be significant: • Management of a company without correct information.
• Wrong (dis) investments in customers, products, factories.
• Maze of Excel reporting, in addition to ERP reporting.
• Search for confidence in your own reporting.
You are disappointed in the implementation of the ERP package. Your expectations were much higher. You thought you would get an overview of KPIs and P&Ls in sub-areas with flashing lights where things go wrong. You also thought that this information would come from the system automatically and not after a week of hard work from your controllers.
In the following, we will try to answer these questions.
Traditional results • Traditionally we see on the one hand a reporting in period accounting where the COGS is actually a summation of all production and purchase costs - and on the other hand the fully integrated result in which the current costs are charged on different characteristics
Tables 2 and 3 show an overview of Greco, which is active in three product groups (α, ß and γ) and in three countries (FR, BE and DE). It is a period report. We see the sales (754,000 euros) among which all costs are listed, including production costs of products that have not yet been sold. We also see the purchase costs of materials that may not have been used up. All of this is compensated by also displaying stock changes, as a global number. All these costs and stock changes together are referred to as COGS (585,965 euros).
The Greco company also realized that they could use weighting to run the business. The stock changes in particular made it difficult to draw conclusions from this report. The company implements an ERP program for this that can give a complete picture of the company and after some time they succeed in generating the right-hand report. They are satisfied because they now see the results on all characteristics (eg EBIT: 68 036 euros) and see current margins (168 035 euros) and results on every combination of country and product group.
Many managers are satisfied with such reports, but we will show in this presentation that this is wrong information.
"P&L by destination": split the results according to responsibility • Sales result • Production result • Purchase result • Logistics result • Marketing result • Overcapacity result • Non-operational result • Revaluation result • Production overhead result • Sale overhead result • Transfer result • Inventory update result
If we look at responsibilities, we can display different partial results that can be consulted by the different departments.
Sales, production and purchase reports are obvious. What is less obvious is that we are going to make real results with revenues and costs. So also the production will show revenues and even the purchase.
But overhead costs such as logistics, marketing and administration can also produce results, which means that they can generate a profit or loss.
Even the use of capacity can lead to profit or (usually) loss.
A growth path is possible in the implementation of the entire P&L by destination. In general, the first (and most important) step is to split the commercial and production results.
How do we get to those results now See fig. 5. The main result, master result is the commercial result that most companies know. However, in that result, only the (net) revenues are current. We keep all other costs as standard. They are charged with the standards of the partial results. For the COGS we therefore take the standard COGS, the standard value of the effectively invoiced product. The actual is not charged to the sales result but is in the production result. There the current costs are compared with the standard value of what has been produced. That means that all variance in production is also at the expense of the production managers and not at the expense of the commercial people. Moreover, the time lag is fully absorbed by the stock. After all, the COGS is a delta stock account sale and the production income is its counterpart: delta stock production. Both are booked at standard price.
We can do the same with overhead costs (logistics, marketing and other overheads). The commercial result is given a certain standard for each sale, which costs logistics as a revenue item. The effective logistics costs will then be added to that logistics. So that logistical result captures both the time lag (logistical costs come before the invoice) and the logistical variance. After all, it is not the fault of the customer or the commercial responsible that the carrier charges waiting hours for transport. Since we do not work here with a stock of logistics costs, the logistics result captures both the time lag and the variance, which is a distinction with the production result.
The production result as such, we can therefore also clarify purchasing variations and capacity under-utilization, two things for which they are not responsible. We divide the purchase again through the stock by splitting the delta stock accounts into consumption at standard (production cost), and stock entry by purchasing at standard (purchase revenue). The actual purchase cost is included in the purchase result as an expense.
Commercial - Production - and purchase result
A simple example, illustrated in Table 11, shows how we can split an integrated result into a P&L by destination. We start with a current commercial margin of 90, whereby the COGS is actually formed by taking all period costs, including the total stock variation. If in this stock variation we only take the stock decrease of the delivery, at standard price, then we can report it as standard COGS.
On the other hand, we supplement with a production report where the total produced volume (12), valued to the same standard, shows the production revenue. On the other hand, we then set the current production costs. We see that the initial margin of 90 is actually a commercial margin of 100 and a production variance (partly on other products) of -10.
If we also set the used raw materials to standard value in the next step, then we only see the stock variation of the raw materials at standard value in that line. The actual purchases are then included in the purchase result and compared with the increase in stock at the standard of the purchase. Again, the quantities used and the quantities purchased can differ from each other. In this example, sales and production performed well while the purchase bought too expensive.
The decomposition from current integrated result to external result
Total margin = + Externally realized margin + Internally realized margin 168,035 = 223,845 - 55,810 (see tables 4a-c)
However, if we decompose the margin by setting the COGS to standard instead of taking the current purchase and production costs, then we see that the product range is not so bad, but that alpha in Germany is not selling well is. What is more important is that we see that the sales generate much more margin than we initially thought, but that 55810 Euro is lost internally in the company.
... and to internal results
See table 5 with total production result -17,681 euros, table 6 with total price variance -615 euros and table 7 with total cost of overcapacity -37,514 euros, together -55,810 euros.
If we look at those internal results, we see that the 55810 is effectively stuck in very poor product range, relatively normal purchases and an unused capacity that also costs us 37514 euros. The responsibilities are therefore very clearly stated.
We can also apply a variance analysis to the commercial result to see the mix, volume and sales price effects.
Example of a commercial partial result: the marketing result
Marketing works just like the logistics. We know rates because we conduct marketing for a country or a product (group) or combination. Those rates are also applied topically and as a result we get results. In marketing there is very clearly a timing effect.

The marketing result: sample report
A "marketing profitability report" is shown in Fig. 6.
If we look at the marketing result over a certain period (for example January) we see a lot of costs and few returns). A few months later the picture is already reversed. The marketing is starting to yield and more revenue is being generated. There is a big time lag in this result. But by creating this result we isolate that difference. In the commercial result, normal marketing belongs to every sale.
The marketing result: graphic
This becomes very clear when we plot it in graph (fig. 7). The costs are incurred in the beginning, and only partially absorbed by the poor sales. A few months later, the sale picks up. The marketing result is therefore first very negative and later very positive. The time lag is temporarily isolated in this result, so that the commercial result remains reasonable and does not cause extreme distortion.
What would the commercial result have been if we had charged all marketing to the sales when the marketing invoices were posted
From an integrated result to the P&L by destination • By working on standard everywhere, both for COGS and for rates, we arrive at a correctly interpretable result.
The EBIT of 68036 is actually 93045 due to the sale.
• This commercial result may be reported on all commercial characteristics, the figures are conceptually and mathematically correct.
• The current values are in the partial results.
See, for example, tables 4a-c.
By working on standard everywhere, both for COGS and for rates, we achieve a correct interpretable result. The EBIT of 68036 (Table 4a) is actually 93045 (Table 4c) due to the commercial. If we then add the other results, we arrive at the P&L by destination. This can also be considered per product, eg specifically for product range, the result is -8,051 euros (table 4a) in reality 110,300 euros (table 4c).
This commercial result may be reported on all commercial characteristics, the figures are conceptually and mathematically correct.
See now Table 8, further commented below:
Finally we arrive at the P&L by destination where each responsible gets his own report with the correct characteristics on each report. The higher the report, the more characteristics (the reporting triangle), the lower the P&L, the fewer the characteristics.
And what ensures the integrity of the data is that the end result is just the same as in accounting. It is a re-classification of the bills and cost objects.
Possible other results • Sales result · Sale of overhead result • Production result · Revaluation result • Purchase result · Production of overhead result • Logistical result · Transfer result or • Marketing result planning result • Overcapacity result · Inventory update result • Non-operational result
The results above are discussed on the left, but there are others.
In addition to marketing and logistics, there are other sales overheads (SG&A). We can report these separately in the sales overhead result that follows the same principles as the logistics or marketing result.
The revaluation result is necessary because we work with standards. If we recalculate the standards (at least once a year) then the profit or loss goes to this result, again because of the responsibilities that we want to keep pure.
We stated that the production overhead result is less necessary because the overhead is close to the production volumes in time. Nevertheless, we can still separate that here, always according to the same principles, with standard rates.
The transfer result or planning result occurs in the specific case that several production plants each have their own standard while the sale works with one (political) standard. The difference between the two standards is at the expense of the planning that is best placed in the cheapest factory.
The inventory update result reflects the profit or loss by valuing the inventory at the end of the period or at the end of the year to an optimal legal or fiscal level. Can also be done by simply updating the stock and using the current purchase and production price to revalue the stock. In any case, those costs or revenues may not pervert the other results.
Finally, we still have the non-operational result in which the financial costs and revenues end up.
It is essential that each result costs and effectively. and has a responsible person.
The way to achieve this • Every result comes from revenues and costs. We create a kind of cascade effect for this, where the returns for one result are the costs of another.
• Account control of the stock accounts must be split up and for the overhead we use secondary accounts outside the general account system (where Dt = Ct) • Clear cost objects to isolate the results, each with their own characteristics.
• Inventory valuation is done on a standard for all materials. • Standards on all lines, including on marketing rates, logistics rates, overhead rates, ..., not just for materials.
• The budget is the basis for the standard prices of all materials. As a result, a deviation from the budget also becomes a deviation from the standard and thus generates P&L results.
The commercial result versus production result
The production result versus purchase result & capacity result
The commercial result versus the other sub-results
The cost objects of each result
How do we get to those results now See for example fig. 8. The main result, master result is the commercial result that most companies know. However, in that result, only the (net) revenues are current. We keep all other costs as standard. The standards are charged to them for the partial results. For the COGS we therefore take the standard COGS, the standard value of the effectively invoiced product. The actual is not charged to the sales result but is in the production result. There the current costs are compared with the standard value of what has been produced. That means that all variance in production is also at the expense of the production managers and not at the expense of the commercial people. Moreover, the time lag is fully absorbed by the stock. After all, the COGS is a delta stock account sale and the production income is its counterpart: delta stock production. Both are booked at standard price.
We can do the same with overhead costs (logistics, marketing and other overheads). The commercial result is given a certain standard for each sale, which costs logistics as a revenue item. The effective logistics costs will then be added to that logistics. So that logistical result captures both the time lag (logistical costs come before the invoice) and the logistical variance. After all, it is not the fault of the customer or the commercial responsible that the carrier charges waiting hours for transport. Since we do not work here with a stock of logistics costs, the logistics result captures both the time lag and the variance, which is a distinction with the production result.
We can therefore also purge the production result as such from purchase variations and from capacity under-utilization, two things for which they are not responsible. We divide the purchase again through the stock by splitting the delta stock accounts into consumption at standard (production cost), and stock entry by purchasing at standard (purchase revenue). The actual purchase cost is included in the purchase result as an expense.
The inventory change accounts • Essential in this story is that the inventory change accounts (609/712/713) are split according to the type of movement. See table 10 for this.
• In this way we can split the results
This applies to the results where inventory movements are booked (purchase, sale and production).
- So not for the logistics, marketing or overhead result. We use secondary accounts with the standard rate there.
Example bookings • Purchase proceeds (STD) 300000 stock of raw materials 100 DT 609010 stock change purchase of LOOCt profit center purchase • Production costs and revenue (STD) 609020 consumption of raw materials 100 DT production profit center 300000 stock of raw materials LOOCt 330000 stock finished product 100 DT 713030 stock change production LOOCt production profit center
• Standard COGS
713040 stock change sales 100 Dt commercial profit center 330000 stock finished product 100 Ct • Fixed production costs with rate based on normal capacity 810000 fixed production cost surcharge 100 Dt production profit center 810000 fixed production cost surcharge 100 Ct capacity profit center • Logistics surcharge (STD) 820000 logistics surcharge 100 Dt commercial profit center 820000 logistics surcharge 100 Ct logistics profit center
Conclusion • This method provides a unique reporting model that immediately shows the responsibility of the figures in the P&L through the creation of partial P&Ls.
• We obtain this by - Booking all materials and all rates at standard. This standard is based on the budget.
Split the stock change accounts into movement - Use the right cost objects on the right results

权利要求:
Claims (14)
[1]
A method for optimizing production and logistics in a production environment, comprising enumerating period costs and period revenues and the related calculation of a global commercial result, characterized in that the commercial result is broken down into the sum of partial results, each partial result is allocated to an internal department.
[2]
Method according to claim 1, characterized in that the partial results comprise the production, purchasing, marketing, capacity and logistical results.
[3]
Method according to one of claims 1 to 2, characterized in that the results are booked in on the basis of a specific carrier for creating a profit center per result, whereby specific characteristics related to this result are provided for each result .
[4]
Method according to one of claims 1 to 3, characterized in that each result comprises both revenues and costs, these revenues and costs being codified separately.
[5]
Method according to one of claims 1 to 4, characterized in that a standard rate is determined for internal costs and revenues, charged to the various partial results and / or commercial result.
[6]
Method according to one of claims 1 to 5, characterized in that a standard tariff cost for marketing and logistics is provided for the commercial result.
[7]
Method according to claim 6, characterized in that this standard rate is codified as revenue for the marketing and logistics result.
[8]
Method according to one of claims 1 to 7, characterized in that the partial results can be further split up.
[9]
Method according to one of claims 1 to 8, characterized in that the commercial result is optimized at the level of the partial results.
[10]
Method according to one of claims 1 to 9, characterized in that the results are calculated by means of a data implementation system linked to a computer.
[11]
A computer program providing a data implementation system coupled to a computer for optimizing production and logistics by calculating a global commercial result, characterized in that the data implementation system provides means for introducing partial results with each partial result assigned is involved in an internal department in the production and / or commercialization of a product or service and the data implementation system calculates a global commercial result on the basis of these partial results.
[12]
A computer program according to claim 11, characterized in that the data implementation system provides means for introducing and calculating the method according to claims 1-10.
[13]
A computer program according to any one of claims 11 to 12 provided on a carrier.
[14]
A computer provided with a computer program according to any one of claims 11 to 13.

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同族专利:

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公开号 | 公开日

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BE1020914B1|2019-09-16|

引用文献:

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公开号 | 申请日 | 公开日 | 申请人 | 专利标题

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法律状态:

优先权:

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申请号 | 申请日 | 专利标题

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BE201300456|2013-06-28|

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BE20130456A|BE1020914B1|2013-06-28|2013-06-28|A METHOD FOR OPTIMIZING PRODUCTION AND LOGISTICS IN A PRODUCING ENVIRONMENT, A COMPUTER PROGRAM AND A COMPUTER WORKING ACCORDING TO THE METHOD.|BE20130456A| BE1020914B1|2013-06-28|2013-06-28|A METHOD FOR OPTIMIZING PRODUCTION AND LOGISTICS IN A PRODUCING ENVIRONMENT, A COMPUTER PROGRAM AND A COMPUTER WORKING ACCORDING TO THE METHOD.|