Movex Version 12 Financial Integration

Movex V12 Financial Integration Agenda Background Integration Requirements New Function for Invoice Matching Highlights of Version 12 Cost Accounting Summary

Movex V12 Financial Applications Supporting Finance at Three Levels Movex V12 Financial Applications Strategic Level - Management Accounting Current Assets Tax Management Multi-Unit Coordination Risk General Ledger Accounts Receivable Payable Fixed Time Accounting Budgeting Cash Flow Cost Product Costing Business Performance Consolidation Report Generator Process Performance Financial Cockpit Balanced Scorecard Activity-Based Management Environment Control Intellectual Capital Fin. Health Check Activity- Based Budget Tactical Level - Financial Controlling (FIC) Financial component groups Operational Level - Financial Management (FIM)

Movex V12 Financial Applications Financial Integration Movex Financial Integration Financial integration This presentation will show examples of “double entry”!

Movex V12 Financial Integration Consolidated Requirements AR/AP-related requirements Invoice matching Print copy invoices from inquiry Taxes and general ledger VAT Sales tax INTRASTAT Fixed assets Create via the purchasing flow Cost accounting Improve the connection between logistics/production and finance Closed circle for MRO

Movex V12 Financial Applications Accounting Rule Moved to Facility Level Movex Financial Integration Financial integration Rule set in (MMS003)!

Movex V12 Financial Applications Inventory Valuation or Inventory Reconciliation Movex V12 Financial Applications Movex Financial Integration Financial integration (CAS180) uses the acquisition price on each MITTRA record

Movex V12 Financial Integration Why Has Intentia Redeveloped This Function? Demand from the market To meet changes in technology To prove concept of an integrated solution Reduce time spent on reconciliation To give customers an efficient process To increase flexibility in matching To match invoices at receipt level To enhance tolerance controls New function for invoice matching

Movex V12 Financial Applications Order Type Connected to Voucher Series Movex Financial Integration Financial integration Rule set in (OIS010/FAM) function!

Movex V12 Financial Integration Solution in Movex Movex V12 Financial Integration Total redesign of invoice matching No files or programs have been saved from Version 11. Invoice matched against goods receipt Instead of always matching invoice lines against the purchase order line. In Version 12, a single goods receipt transaction can be selected for matching. Invoiced not received If the goods have not been received, the invoice line is entered as “Invoice not received.” The accounting for this line is later reversed when the goods arrive. Simplified purchasing For non-inventory items, a new inventory accounting method (type = 5) has been introduced. No accounting is done at goods receipt, instead all accounting entries are created at invoice matching. New function for invoice matching Creating accounting entries In order to create accounting entries for a single invoice line, the line must be approved. Invoice lines that cannot be approved are booked to a clearing account.

Movex V12 Financial Integration Solution in Movex Movex V12 Financial Integration Automatic invoice matching Electronically received invoices, created in (APS050), will be automatically matched to the goods receipt transactions when the invoice updates AP, option 9 in (APS050). Creating fixed assets If the GL account is defined as a fixed asset account, it is now possible to create a fixed asset directly from the invoice matching programs. Normally, the capital item purchased will be set with inventory accounting method “Simplified purchasing” in (MMS003). Third-party charges Where the purchase costing model contains external charges these can now be invoice matched to invoices from a third party. New function for invoice matching Price variance at goods receipt In a standard cost environment, a price variance between PO price and the standard cost is recognized at goods receipt.

Movex V12 Financial Applications Average Cost History Movex Financial Integration New rules for updates MITAVP replaced by FCAAVP Financial integration

New Function for Invoice Matching New Files for Goods Receipt FGRECL Goods Receipt - Line FGRECL One record per receiving number FGRPCL One record per receiving number and costing sequence number FGRPCL Goods Receipt - Line Charges Goods receipt The data in these files can be displayed in the new program, (APS370) and (APS371).

New Function for Invoice Matching Accounting Entries at Goods Receipt Three different settings in (CAS900) are possible to determine when accounting entries and general ledger updates should be processed. 1. Two manual steps Only goods receipt files are updated when user ends (PPS300). Accounting entries are created manually from (CAS950). Update of general ledger is done manually from (CAS950) or (CAS960)—this is as the solution in Version 11. Goods receipt 2. One manual step Accounting entries are immediately created when user ends (PPS300). Update of general ledger is done manually from (CAS950) or (CAS960). 3. Automatic accounting A voucher is immediately created when user ends (PPS300).

Movex V12 Financial Applications VAT Rate Determined by Country and Area/State Movex Financial Integration Financial integration VAT code can be a divisional exception

New Function for Invoice Matching Program Flow at Goods Receipt Batch job (CAS951CL) always starts when user ends (PPS300) or (PPS330). CAMNGCCI Write to CINACC CINACC (CAS961) Update FAM General ledger (PPS300) Goods receipt (CAS951CL) Control program CAMNGTT2 Manage 20-29 FGRECL (CAS951) Read MITTRA FGRPCL (PPS330) Dlt goods receipt General ledger Goods receipt

Movex V12 Financial Applications VAT Code at Item Warehouse Level Movex Financial Integration Financial integration VAT code for buying and selling in (MMS002)!

New Function for Invoice Matching Example Accounting Entries Purchase order Standard cost 010 Purchase base price 99.00 020 External, line charge 3.47 030 External, distributed charge 3.47 040 External, header charge 3.47 050 Internal, line charge 12.00 060 Internal, distributed charge 12.00 Total 133.41 90.00 3.50 12.00 121.00 PP10-910 Inventory 121.00 PP10-225 Received not invoiced - item 99.00 - PP10-226 Received not invoiced - line charge 3.47 - PP10-251 Internal line charge 12.00 - PP10-911 Price variance 8.94 Goods receipt

Movex V12 Financial Applications A Division Can Have Warehouses in Another Country Movex V12 Financial Applications Movex Financial Integration Financial integration VAT registration number on warehouse

New Function for Invoice Matching Allowed Variances at Invoice Matching The tolerances between purchase order and invoice are defined in the new program (APS900). General price tolerances Both an amount and a percentage variance can be defined. The amount variance is defined per piece in invoice currency, PO price U/M. General quantity tolerances Both a unit and a percentage variance can be defined. The unit variance is defined in the PO U/M. User-defined keys More specific tolerances can be defined in addition to the above general rules with up to three additional user-defined keys, as set in (CRS016). Supplier number Item group Order type Item number Supplier group Item type Product group Procurement group Invoice matching

Example: Allowed Variances FGRECL (Receipt line) Data fields Received quantity 10.00 Received cost 9.90 Received exch rate 1.00000 Received cost amount 99.00 Invoiced quantity Invoiced cost amount Inv matching status Inv matching date Allocated by invoice no. FGINLI (Invoice line) Data fields Invoice quantity 7.00 Invoice price 10.50 Invoice net amount 73.50 Additional cost 0.00 Status - quantity Status - price Status - acct entries Quantity variance: 3 PCE/30% Allowed quantity variance: 4 PCE/10% Not approved Price variance: 0.60 GBP/6.06% Allowed price variance: 3.60 GBP/15% Approved

Movex V12 Financial Applications VAT Rules on Country Code Movex Financial Integration Settlement discount for BE; GB and SE in (CRS045) Financial integration

Movex V12 Financial Controlling Product Costing and Cost Accounting Distribution key on B components Totals of element type in product costing Changed database structure for order costing (introducing balance file, etc.) Improved analysis of order costing on all levels (item, item group, work center, etc.) Introduced alternative rate on operations Allocation of sales and administrative costs Option to create detailed account entries for WIP Changed account for subcontracted items New possibilities in acct. for customer order Improved analyses of internal acct. entries Introducing resource drivers in CA Changes in average cost history New printout for inventory reconciliation Overview

Changes in Product Costing Solution in Movex Three cost distribution keys in (PCS010E) The first key must be work center Keys two and three can select fields from field group C, program (CRS109) Values for each cost distribution key are entered in (PCS100B) and (PCS011G) Distribution keys on B components

Changes in Product Costing Why Has Intentia Developed This Function? Improve the display functionality in a costing model User-defined component totals for display purposes not included in subtotals Both details and component totals in one costing model New costing element type not included in subtotals or final total (PCS002) Totals of element type in product costing

Changes in Order Costing Analyses Why Has Intentia Developed This Function? Changing the database structure was a prerequisite for the functional requirements in order costing analyses, which are: Possibility to drill down from one order to single material components/operations Possibility to follow up higher levels than order, for example product or item group To be able to see the full cost; the product OH (E components) should also be saved in the order costing Every new order costing of an order should be saved Changed database structure for order costing

Changes in Order Costing Analyses Solution in Movex New file structure The old file for order costing, CPOCAL, has been replaced with a totally new file structure containing a number of new files. Three different types of values Three different types of values are saved: Actual value Standard value Scrapped value Changed database structure for order costing

Changes in Order Costing Analyses New File Structure The order costing data is saved in 14 new files on four different levels 1. Accumulated per period and, for example, product 2. Per order 3. Per material component/operation 4. Per costing component and value type

Changes in Order Costing Analyses Three Different Types of Values All files prepared for the following value types: Standard cost (Std qty * Std rate) Actual cost (Act qty * Std rate) Fixed Variable Post-actual cost (Act qty * Act rate) Scrap value (Act cost * Scrap qty) Changed database structure for order costing

Improved analysis of order costing Changes in Order Costing Analyses Solution in Movex New programs to display order costing Old program to display order costing (CAS304) has been replaced with a number of new programs. Order costing sequence number Every order costing belongs to an order costing sequence number. This makes it possible to analyze the order costing history. Release MO for order costing There are three different ways to release a MO for order costing: Automatically when the status in set to 90 Automatically from batch job (CAS320) Manually in (CAS310). Improved analysis of order costing Detail accounting entries for variances The accounting entries for order costing variances can be created on a detail level. This means that the variances will be created per material component and operation number. Split accounting entries for variances The accounting entries for order costing variances can be split into costing components according to “this level” or “all levels.”

Changes in Order Costing New Programs for Display of Order Costing (CAS311)/(CAS312) Total values per order number displayed according to product structure Panel versions used to define what should be displayed in sub-file Possible to select whether material/operation should be displayed with one line per order costing or accumulated to one line per material/operation Several options to jump to related programs Improved analysis of order costing (CAS312) Display Product Structure (PCS300) (CAS300) (CAS313) (CAS315) (MMS070)

Changes in Order Costing New Programs for Display of Order Costing (CAS313) Total values per material/operation displayed according to product costing model Panel versions used to define what should be displayed in sub-file Values displayed per order costing sequence number Improved analysis of order costing Possible to display according to “this level” or “all levels” (CAS313) Display Product Costing Model

Changes in Order Costing Release MO for Order Costing Order can be released for order costing in three different ways: 1. Automatically when the order is closed, that is, receives status 90, as defined for the manufacturing order type in (PMS120) 2. Automatically, in a batch job in (CAS320), provided that the order is closed 3. Manually in (CAS310) using option 9 Improved analysis of order costing Indicates whether order is released for order costing

Various Changes in Cost Accounting Why Has Intentia Developed This Function? Rate used for operation reporting was always equal to the standard rate Using an alternative rate different from the standard can be needed for the following reasons: Someone other than planned is doing the operation The operation is performed outside normal working time Introduced alternative rate on operations

Various Changes in Cost Accounting Solution in Movex Various Changes in Cost Accounting When reporting operations, in (PMS070) or (MOS070), it is possible to enter a costing type. This costing type is later used when the accounting entries for the debit to WIP “Actual cost” (PM20-920) are created. Costing type displayed as default at operation reporting is defined in (PCS001) (parameter 15). Whether the costing type can be changed in (PMS070) or (MOS070) is controlled by the ‘Select parameter’ field in (PDS010/G). Introduced alternative rate on operations New parameter on work center also controls whether any cost accounting transactions should be created.

Allocation of Sales and Admin. Overhead Example: Customer Order Invoicing OI20-971 £ 145.00 OI20-951 OI20-981 £ 55.00 OI20-981 £ 11.00 OI20-980 £66.00

Various Changes in Cost Accounting Solution in Movex Subcontracted items are now included in the new files and programs for order costing View 04 in (CAS310) is reserved for subcontracted items Issue to subcontractor done under new accounting event PP40 (v11 MM10) Receipt from subcontractor done under event PP10 (operations) and PP30 manufactured item Order costing done under new event CA25 (v11 no order costing) Old programs used for subcontracted items deleted: (PPS225), (PPS850) and PPS855) Changed accounting for subcontracted items

Various Changes in Cost Accounting Why Has Intentia Developed This Function? Make it possible to create cost accounting transaction (accounting event OI20) for customer order lines with direct delivery (line type = 2) Make it possible to control whether cost accounting transactions are to be created for customer order returns coming from (OIS390) New possibilities in cost accounting for customer order

Various Changes in Cost Accounting Solution in Movex Various Changes in Cost Accounting Possible to define per customer order line whether cost accounting transactions should be created (OIS101/G). 0 = No 1 = Yes New possibilities in cost accounting for customer order Default value taken from dispatch policy (MWS010/F) parameter 200

Various Changes in Cost Accounting Solution in Movex Various Changes in Cost Accounting Possible to use Open Related/Dsp invoices (option 11). Improved analyses of internal account entries For customer order invoices (event OI20) and service order invoices (event SO20), program (ARS200) is started For purchase order invoices (event PP20), program (APS200) is started

Various Changes in Cost Accounting Solution in Movex Various Changes in Cost Accounting Possible to use Open Related/Dsp lines (option 12). Improved analyses of internal account entries For purchase order lines (event PP10 and PP20), program (PPS220) is started For customer order invoices (event OI20), program (OIS356) is started For service order invoices (event OI20), program (SOS350) is started

Introducing Resource Driver Why Has Intentia Developed This Function? To start building the base for true activity-based costing Long-term goal is to harmonize cost driver in product costing and cost variables in cost accounting The resource driver will be the base when making allocations for internal charges—see application requirement (CAS013) Also the base for enhanced functionality in cost center accounting area (CAS200) Possibility to automatically calculate cost rates and, for example, transfer them to product costing First step is to replace the cost variable with resource driver in cost accounting Introduce resource driver in cost accounting

Introducing Resource Driver What Is a Resource Driver? The link between resources and activities. Determines an activity’s unit cost Activity (Process supplier invoices) 15 * 0.10 = £1.50 Resource driver (Labor hours) Resource driver (Square meters) 200 * 0.01 = £2.00 Introduce resource driver in cost accounting £15/hour 0.10/hour £200/square meter 0.01/square meter Resource 1 (Labor) Resource 2 (Floor space)

Introducing Resource Driver How to Set the Rate? Financial budget Budget labor cost = Budget rate Budget labor hours MRP Introduce resource driver in cost accounting General ledger Actual labor cost = Actual rate Actual labor hours Operation transactions

Changes in Inventory Reconciliation Solution in Movex Average cost prices can be changed as they are today or historically Accounting entries can be created for both inventory and cost of sales Sales statistics can also be corrected where the average price is adjusted historically Changes in average cost history

Changes in Inventory Reconciliation Solution in Movex Two new programs for display of average cost, (CAS370) and (CAS371). New file FCAAVP. The transaction type is displayed and all information about the transaction is saved If the acquisition cost is changed, a proposal can be printed before recalculation The original acquisition cost is always saved

Changes in Inventory Reconciliation Solution in Movex Two new report layouts: Long item description Report with totals only Selection on “accounting control object” More options to evaluate inventory balances by price type: Inventory accounting method Costing type, subtotal and date, substituting costing type Sales price from item file Sales price from price list New printout for inventory reconciliation

Changes in Inventory Reconciliation Solution in Movex

Movex V12 Financial Applications For INTRASTAT Reporting Movex Financial Integration Financial integration Customer VAT registration no. on delivery address

Movex V12 Financial Applications Summary The OPM group would like to thank all our colleagues in IRD who have assisted in the v12 developments that have increased the level of financial integration within Movex. Financial integration

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