Costing Product and Services

The Costing functionality in the Compiere ERP system is flexible and comprehensive. Users can customize it to meet their unique business needs, such as specifying the level of detail to track. Users can have multiple parallel costing methods. These can include Standard and Actual costs. Product costs may be composed of both Material and non-Material costs.

Compiere's ERP business solution maintains the information for the following costing methods:

Standard Costing
Actual Costing (Last PO, Last Invoice, LIFO, FIFO)
Average (PO, Invoice)
Costs can be recorded at three levels: Company, Organization, or Batch/Lot. You can also specify a different costing method or level for a Product Category. This allows the maximum flexibility for financial analysis. You may switch the costing method used any time. The information is very valuable to compare trends. Costs are maintained in your accounting currency.

Using different costing methods (Standard, Actual, or Average) can result in different financial results. The Compiere ERP supports more than one costing method, e.g. for legal accounting and business decision-making.

The following general information is maintained per Product and Accounting Schema:

Current Cost (based on Standard or Actual Costing)
Last Purchase Order Price (converted)
Last AP Invoice Price (converted)
Total lifetime Invoice Quantity and Amount (resulting in lifetime average cost)