The financial sub-system consists of five modules. These modules, working in concert, provide the basis for an integrated financial and manufacturing system.
The Cost Development System (CDS+PLUS) calculates the cost of a product given the bill of material, routings, material costs, and labor and overhead rates. The Cost Development System satisfies the needs of accounting, operations, and sales and marketing. The accounting department, to comply with financial reporting requirements, uses the frozen cost. Operations uses the frozen cost to measure inventory levels since the only variable, in this instance, is the inventory quantity. Operations use the current manufacturing cost to analyze operations since it is the representation of the current state. Sales and marketing use any of the simulated costs to calculate what the product will cost in the future given changes in material, labor, or overheads costs. This knowledge helps in cases where the product’s selling price is a result of the product’s cost.
The Cost Management System (CMS+PLUS) converts manufacturing activity into its financial equivalents. A number of variances are calculated by the system. Two significant variances are the design change variance, the material substitution and the material utilization variance. The design change variance shows the gain or loss from the product improvement cycle. The material substitution variance is indicative of the company’s ability to execute to the materials plan. The material utilization variance measures the value of material consumed against planned consumption.
The General Ledger (G/L) is a powerful tool that you can customize to meet the accounting requirements of your organization. You may customize the system by rearranging the display of data, incorporating special edits, and creating your own computations. The system has many other features including “pro-forma” posting and automatic transaction generation..
Accounts Payable (AP) provides sophisticated tools to manage the payables process. One of the most important features is cash management. The cash management capabilities are extremely powerful since they include not only the amount due on existing payables but also projected cash commitments for the purchasing system (PCS+PLUS).
Accounts Receivable (AR) module is integrated with the pick pack and ship function OMS+PLUS/PPS that triggers the creation of the invoice. A/R is integrated with the Order Entry System (OMS+PLUS/OE). This integration provides the ability to see not only the A/R balance but also the value of pending shipments thus enhancing the credit and collections function.