4 Movex V12 Financial Applications Financial IntegrationMovexFinancialIntegrationFinancial integrationThis presentation will show examples of “double entry”!
5 Movex V12 Financial Integration Consolidated RequirementsAR/AP-related requirementsInvoice matchingPrint copy invoices from inquiryTaxes and general ledgerVATSales taxINTRASTATFixed assetsCreate via the purchasing flowCost accountingImprove the connection between logistics/production and financeClosed circle for MRO
6 Movex V12 Financial Applications Accounting Rule Moved to Facility LevelMovexFinancialIntegrationFinancial integrationRule set in (MMS003)!
7 Movex V12 Financial Applications Inventory Valuation or Inventory ReconciliationMovex V12 Financial ApplicationsMovexFinancialIntegrationFinancial integration(CAS180) uses the acquisition price on each MITTRA record
8 Movex V12 Financial Integration Why Has Intentia Redeveloped This Function?Demand from the marketTo meet changes in technologyTo prove concept of an integrated solutionReduce time spent on reconciliationTo give customers an efficient processTo increase flexibility in matchingTo match invoices at receipt levelTo enhance tolerance controlsNew function for invoice matching
9 Movex V12 Financial Applications Order Type Connected to Voucher SeriesMovexFinancialIntegrationFinancial integrationRule set in (OIS010/FAM) function!
10 Movex V12 Financial Integration Solution in MovexMovex V12 Financial IntegrationTotal redesign of invoice matchingNo files or programs have been saved fromVersion 11.Invoice matched against goods receiptInstead of always matching invoice lines against thepurchase order line. In Version 12, a single goods receipttransaction can be selected for matching.Invoiced not receivedIf the goods have not been received, the invoice line isentered as “Invoice not received.” The accounting forthis line is later reversed when the goods arrive.Simplified purchasingFor non-inventory items, a new inventory accountingmethod (type = 5) has been introduced. No accounting isdone at goods receipt, instead all accounting entries arecreated at invoice matching.New function for invoice matchingCreating accounting entriesIn order to create accounting entries for a single invoiceline, the line must be approved. Invoice lines that cannotbe approved are booked to a clearing account.
11 Movex V12 Financial Integration Solution in MovexMovex V12 Financial IntegrationAutomatic invoice matchingElectronically received invoices, created in (APS050),will be automatically matched to the goods receipttransactions when the invoice updates AP,option 9 in (APS050).Creating fixed assetsIf the GL account is defined as a fixed asset account, it isnow possible to create a fixed asset directly from theinvoice matching programs. Normally, the capital itempurchased will be set with inventory accounting method“Simplified purchasing” in (MMS003).Third-party chargesWhere the purchase costing model contains external charges these can now be invoice matched to invoices from a third party.New function for invoice matchingPrice variance at goods receiptIn a standard cost environment, a price variance between PO price and the standard cost is recognized at goods receipt.
12 Movex V12 Financial Applications Average Cost HistoryMovexFinancialIntegrationNew rules for updatesMITAVP replaced by FCAAVPFinancial integration
13 New Function for Invoice Matching New Files for Goods ReceiptFGRECL Goods Receipt - LineFGRECLOne record per receiving numberFGRPCLOne record per receiving number and costing sequence numberFGRPCL Goods Receipt - Line ChargesGoods receiptThe data in these files can be displayed in the new program, (APS370) and (APS371).
14 New Function for Invoice Matching Accounting Entries at Goods ReceiptThree different settings in (CAS900) are possible to determine when accounting entries and general ledger updates should be processed.1. Two manual stepsOnly 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 receipt2. One manual stepAccounting entries are immediately created when user ends (PPS300). Update of general ledger is done manually from (CAS950) or (CAS960).3. Automatic accountingA voucher is immediately created when user ends (PPS300).
15 Movex V12 Financial Applications VAT Rate Determined by Country and Area/StateMovexFinancialIntegrationFinancial integrationVAT code can be a divisional exception
16 New Function for Invoice Matching Program Flow at Goods ReceiptBatch job (CAS951CL) always starts when user ends (PPS300) or (PPS330).CAMNGCCIWrite to CINACCCINACC(CAS961)Update FAMGeneral ledger(PPS300)Goods receipt(CAS951CL)Control programCAMNGTT2Manage 20-29FGRECL(CAS951)Read MITTRAFGRPCL(PPS330)Dlt goods receiptGeneral ledgerGoods receipt
17 Movex V12 Financial Applications VAT Code at Item Warehouse LevelMovexFinancialIntegrationFinancial integrationVAT code for buying and selling in (MMS002)!
18 New Function for Invoice Matching Example Accounting EntriesPurchase orderStandard cost010 Purchase base price020 External, line charge030 External, distributed charge040 External, header charge050 Internal, line charge060 Internal, distributed chargeTotal90.003.5012.00121.00PP InventoryPP Received not invoiced - itemPP Received not invoiced - line chargePP Internal line chargePP Price varianceGoods receipt
19 Movex V12 Financial Applications A Division Can Have Warehouses in Another CountryMovex V12 Financial ApplicationsMovexFinancialIntegrationFinancial integrationVAT registration number on warehouse
20 New Function for Invoice Matching Allowed Variances at Invoice MatchingThe tolerances between purchase order and invoice are defined in the new program (APS900).General price tolerancesBoth 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 tolerancesBoth a unit and a percentage variance can be defined. The unit variance is defined in the PO U/M.User-defined keysMore 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 groupOrder type Item numberSupplier group Item typeProduct group Procurement groupInvoice matching
22 Movex V12 Financial Applications VAT Rules on Country CodeMovexFinancialIntegrationSettlement discount for BE; GB and SEin (CRS045)Financial integration
23 Movex V12 Financial Controlling Product Costing and Cost AccountingDistribution key on B componentsTotals of element type in product costingChanged 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 operationsAllocation of sales and administrative costsOption to create detailed account entries for WIPChanged account for subcontracted itemsNew possibilities in acct. for customer orderImproved analyses of internal acct. entriesIntroducing resource drivers in CAChanges in average cost historyNew printout for inventory reconciliationOverview
24 Changes in Product Costing Solution in MovexThree cost distribution keys in (PCS010E)The first key must be work centerKeys 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
25 Changes in Product Costing Why Has Intentia Developed This Function?Improve the display functionality in a costing modelUser-defined component totals for display purposes not included in subtotalsBoth details and component totals in one costing modelNew costing element type not included in subtotals or final total (PCS002)Totals of element type in product costing
26 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/operationsPossibility to follow up higher levels than order, for example product or item groupTo be able to see the full cost; the product OH (E components) should also be saved in the order costingEvery new order costing of an order should be savedChanged database structure for order costing
27 Changes in Order Costing Analyses Solution in MovexNew file structureThe 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 valuesThree different types of values are saved:Actual valueStandard valueScrapped valueChanged database structure for order costing
28 Changes in Order Costing Analyses New File StructureThe order costing data is saved in 14 new files on four different levels1. Accumulated per period and, for example, product2. Per order3. Per material component/operation4. Per costing component and value type
29 Changes in Order Costing Analyses Three Different Types of ValuesAll files prepared for the following value types:Standard cost(Std qty * Std rate)Actual cost(Act qty * Std rate)FixedVariablePost-actual cost(Act qty * Act rate)Scrap value(Act cost * Scrap qty)Changed database structure for order costing
30 Improved analysis of order costing Changes in Order Costing AnalysesSolution in MovexNew programs to display order costingOld program to display order costing (CAS304) has been replaced with a number of new programs.Order costing sequence numberEvery order costing belongs to an order costing sequence number. This makes it possible to analyze the order costing history.Release MO for order costingThere are three different ways to release a MO for order costing:Automatically when the status in set to 90Automatically from batch job (CAS320)Manually in (CAS310).Improved analysis of order costingDetail accounting entries for variancesThe 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 variancesThe accounting entries for order costing variances can be split into costing components according to “this level” or “all levels.”
31 Changes in Order Costing New Programs for Display of Order Costing(CAS311)/(CAS312)Total values per order number displayed according to product structurePanel versions used to define what should be displayed in sub-filePossible to select whether material/operation should be displayed with one line per order costing or accumulated to one line per material/operationSeveral options to jump to related programsImproved analysis of order costing(CAS312)Display Product Structure(PCS300)(CAS300)(CAS313)(CAS315)(MMS070)
32 Changes in Order Costing New Programs for Display of Order Costing(CAS313)Total values per material/operation displayed according to product costing modelPanel versions used to define what should be displayed in sub-fileValues displayed per order costing sequence numberImproved analysis of order costingPossible to display according to “this level” or “all levels”(CAS313)Display Product Costing Model
33 Changes in Order Costing Release MO for Order CostingOrder 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 closed3. Manually in (CAS310) using option 9Improved analysis of order costingIndicates whether order is released for order costing
34 Various Changes in Cost Accounting Why Has Intentia Developed This Function?Rate used for operation reporting was always equal to the standard rateUsing an alternative rate different from the standard can be needed for the following reasons:Someone other than planned is doing the operationThe operation is performed outside normal working timeIntroduced alternative rate on operations
35 Various Changes in Cost Accounting Solution in MovexVarious Changes in Cost AccountingWhen 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 operationsNew parameter on work center also controls whether any cost accounting transactions should be created.
36 Allocation of Sales and Admin. Overhead Example:Customer Order InvoicingOI20-971£OI20-951OI20-981£ 55.00OI20-981£ 11.00OI20-980£66.00
37 Various Changes in Cost Accounting Solution in MovexSubcontracted items are now included in the new files and programs for order costingView 04 in (CAS310) is reserved for subcontracted itemsIssue to subcontractor done under new accounting event PP40 (v11 MM10)Receipt from subcontractor done under event PP10 (operations) and PP30 manufactured itemOrder 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
38 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
39 Various Changes in Cost Accounting Solution in MovexVarious Changes in Cost AccountingPossible to define per customer order line whether cost accounting transactions should be created (OIS101/G).0 = No1 = YesNew possibilities in cost accounting for customer orderDefault value taken from dispatch policy(MWS010/F) parameter 200
40 Various Changes in Cost Accounting Solution in MovexVarious Changes in Cost AccountingPossible to use Open Related/Dsp invoices (option 11).Improved analyses of internal account entriesFor customer order invoices (event OI20) and service order invoices (event SO20), program (ARS200) is startedFor purchase order invoices (event PP20), program (APS200) is started
41 Various Changes in Cost Accounting Solution in MovexVarious Changes in Cost AccountingPossible to use Open Related/Dsp lines (option 12).Improved analyses of internal account entriesFor purchase order lines (event PP10 and PP20), program (PPS220) is startedFor customer order invoices (event OI20), program (OIS356) is startedFor service order invoices (event OI20), program (SOS350) is started
42 Introducing Resource Driver Why Has Intentia Developed This Function?To start building the base for true activity-based costingLong-term goal is to harmonize cost driver in product costing and cost variables in cost accountingThe 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 costingFirst step is to replace the cost variable with resource driver in cost accountingIntroduce resource driver in cost accounting
43 Introducing Resource Driver What Is a Resource Driver?The link between resources and activities.Determines an activity’s unit costActivity(Process supplier invoices)15 * 0.10 = £1.50Resource driver(Labor hours)Resource driver(Square meters)200 * 0.01 = £2.00Introduce resource driver in cost accounting£15/hour0.10/hour£200/square meter0.01/square meterResource 1(Labor)Resource 2(Floor space)
44 Introducing Resource Driver How to Set the Rate?Financial budgetBudget labor cost= Budget rateBudget labor hoursMRPIntroduce resource driver in cost accountingGeneral ledgerActual labor cost= Actual rateActual labor hoursOperation transactions
45 Changes in Inventory Reconciliation Solution in MovexAverage cost prices can be changed as they are today or historicallyAccounting entries can be created for both inventory and cost of salesSales statistics can also be corrected where the average price is adjusted historicallyChanges in average cost history
46 Changes in Inventory Reconciliation Solution in MovexTwo 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 savedIf the acquisition cost is changed, a proposal can be printed before recalculationThe original acquisition cost is always saved
47 Changes in Inventory Reconciliation Solution in MovexTwo new report layouts:Long item descriptionReport with totals onlySelection on “accounting control object”More options to evaluate inventory balances by price type:Inventory accounting methodCosting type, subtotal and date, substituting costing typeSales price from item fileSales price from price listNew printout for inventory reconciliation
48 Changes in Inventory Reconciliation Solution in Movex
49 Movex V12 Financial Applications For INTRASTAT ReportingMovexFinancialIntegrationFinancial integrationCustomer VAT registration no. on delivery address
50 Movex V12 Financial Applications SummaryThe 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