Cetec ERP | Configurable Costing Methods

Configurable Costing Methods

  • Actual / FIFO Costing - Cetec ERP supports and recommends an actual costing methodology, whereby COGS postings pull from the actual value of any receipts of material that were consumed against the invoice transaction.
  • Average costing - Cetec ERP supports the average costing methodology, whereby COGS postings pull from material average cost to drive the value on the transaction as opposed to the actual receipt cost of material consumed on an invoice. Cetec ERP will also simply track the average cost value of parts per inventory warehouse location, irrespective of whether or not that value is used to post to the G/L at invoicing.
  • Standard Costing - Cetec ERP supports standard costing methodology and automatic purchase price variance posting to the journal and respective financial reports between standard cost and purchase order receipt cost (at time of receipt of product) and standard cost and actual material invoice cost (at time of invoicing).