R. Vinilon S.: Manufacturing Cost Allocation
A new system was developed within the JD Edwards Manufacturing module to automate the calculation and allocation of production costs. This included the creation of batch applications to handle scrap allocations and automate the generation of manufacturing journal entries. Additionally, existing interactive applications were refined and maintained to resolve operational bugs, resulting in improved financial accuracy and system stability for manufacturing operations.
Tech Stack
Overview
A custom cost allocation system was architected and developed within the JD Edwards Manufacturing module. The goal was to automate the transition from production floor activities to financial accounting, specifically focusing on how scraps and production costs are calculated and recorded in the General Ledger.
Challenges/Problems
- Inaccurate Costing: Manual or inefficient methods for calculating scrap and production costs led to discrepancies in manufacturing journal entries.
- Application Instability: Existing interactive applications within the manufacturing module contained bugs that hindered the daily operations of the production and finance teams.
- Complex Allocation Logic: The process of accurately distributing overhead and production costs into the correct accounts was labor-intensive and prone to error.
Solutions
- Custom Batch Processing: Specialized Batch Applications (UBEs) were developed to automatically calculate scrap allocations and production costs.
- Automated Journal Entries: Logic was implemented to transform calculated costs directly into Manufacturing Journal Entries, ensuring seamless integration between the shop floor and Finance.
- Application Refactoring: A thorough review and fix of existing interactive applications were performed, resolving operational bugs and improving the user experience for the manufacturing team.
Key Impact
- Improved Financial Accuracy: The automation of cost allocations significantly reduced errors in manufacturing financial reports.
- Operational Stability: The manufacturing module became more reliable following the successful debugging and maintenance of core interactive applications.
- Process Efficiency: Time spent on manual calculations and journal entry preparation was eliminated, allowing the finance team to focus on analysis rather than data entry.