Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)
1 1.Valuation of Raw Material Stock & Other Stores.
1 Valuation of Raw Materials
1.1 Input of Raw Materials Cost/Price
1.1.1 Input of Raw Materials Cost/Price (GRIN)
Materials department will prepare the GRINs (Goods
Receipt & Inspection Note) with the details of No.of
units received, Name of the supplier, Price of the
materials supplied after inspection of the same.

1.1.2 Inward Freight cost on Raw materials The inward freight charges of above Raw materials
are separately accounted by accounts dept.This has
to be apportioned to the units of respective
consignments.
1.1.3 Insurance cost on Materials
Insurance premiums are paid separately by accounts
dept. These costs also included in the RM cost.

1.1.4 Raw Materials Cost as per Costing Dept.

Aggregate of all above costs valued as cost of Raw
materials.

2 Valuation of Other Stores

2.1 Input of Other Stores Cost/Price
Input of Other Stores Cost/Price
Materials department will prepare the GRINs (Goods
Receipt & Inspection Note) with the details of No.of
units received, Name of the supplier, Price of the
materials supplied after inspection of the same.
2.1.1
Inward Freight cost on materials The inward freight charges of above materials are
separately accounted by accounts dept.This has to
be apportioned to the units of respective
2.1.2 consignments.
Insurance cost on Consumables Insurance premiums are paid separately by accounts
dept. These costs also included in the above material
2.1.3 cost.
Materials Cost other than RM as per Costing Dept. The above all costs together valued as cost of Other
2.1.4 Stores.
Valuation of Work-in-Process (Semi Finished Stock)
3 Valuation of Semi processed stock - Plant Stage
3.1 Issues of Raw Materials
Process of Raw materials - RMRS Production dept requests stores dept. for issue of
raw materials through Raw Materials Requisition
Slips. The materials are with drawn for the purpose
of machining and other processes.
3.1.1

07/07/2020 1 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)
Valuation of Raw Materials at Plant Stage
The Production dept.will return the materials drawn
after completion of all machining process. However
some materials pending with production dept.at
incomplete stage. These materials are to be valued
at plant stage for the respective process completed.
3.1.2
Valuation of Raw Materials at Stores Stage - SFPR Materials department will receive the materials from
Production dept.thro' SFPR. These materials may
3.1.3 also be sent to Subcontracting work.
Assy. dept requests stores dept. to issue of semi
Valuation of Raw Materials at Assembly Stage - CRS
finished stock through Components Requisition
Slips. These are issued for assembling purpose.
3.1.4
Receipt of Finished Goods by Marketing Dept. After issue of Job Completion Report (JCR) to stores
dept., marketing dept will arrange for dispatch of the
3.1.5 finished goods to our clients.
Preparation of Cost Sheet
4 Preparation of Cost Sheet for Individual Product
4.1 Direct Cost
4.1.1 Preparation of Bill of Materials
All assembly products has a list of materials (BoM) to
be assembled to form a final product. This BoM is
obtained either from CAD or Client(FMC) site.

4.1.2 Raw Materials Cost. This cost is obtained as detailed in the Para 1.1.4
4.1.3 Bought out Cost This cost is obtained as detailed in the Para 2.1.4 for
eg.O-Rings,Quick pin etc. is assembled with the
main product.
4.1.4 In-House Machining Cost On the basis of Machine hour cost & the time
required for the operation, the in-house cost of the
product is arrived at. The machine hour cost is
ascertained on the basis of following data.

i) Machine hour details - Total time machine

operated, setting time & Idle time
ii) Standard time & Actual time taken for machining of
products.
iii) Expenses incurred at this (Production) cost centre
such as direct wages, inserts, power, plant depn.,
consumables, tools, maintenance exp & any other
relevant cost.)
4.1.5 Sub Contracting Cost This cost is available from MICs, Job Orders &
Subcontractors Invoice.
4.1.6 Special Process Cost i) Details of Coating, Sand blasting, Lapping, Heat
treatment, Nitriding processes required for each
product are furnished by HT dept.

07/07/2020 2 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up
4.1.6 Special Process Cost

Costing (Controlling)
ii) Unit cost of the process is ascertained on the
basis of Cost of materials, labour, power etc.
incurred for this cost centre.
iii) The Spl.Process cost is allocated to the product
based on measurement of area of the product to be
coated.
4.1.7 Painting Cost Based on the paint mix required, the cost of painting
is worked out.
Labour cost allocated based on no. of units painted.

4.1.8 Assembly Cost The expenses incurred at the assy.dept including

packing material is allocated to assembled units.
4.2 Indirect Cost
Indirect Manufacturing cost The cost other than direct manufacturing cost is
4.2.1 apportioned based on the units produced
Administrative Overhead All costs related to administration is apportioned
4.2.2 based on the units produced.
Accounting of Rejection Materials
5 Accounting of SPDRs
5.1 Suppliers/Subcontractors Rejections

5.1.1 Suppliers Rejections

Materials rejected by quality dept. at raw material
stage is deducted from raw material stage.

5.1.2 Subcontractors Rejections Materials rejected by quality dept. other than raw
material stage is deducted from respective WIP
stage.
5.2 Accounting of PDRs
5.2.1 Materials rejection at production process Materials rejected at our production processes due to
various reasons is deducted from respective WIP
stage.
Accounting of Inter Company Machining Charges
6 Work Done by GTN for JEL
6.1 Machining & Other processes done by GTN for JEL
6.1.1 Material sent by JEL for processing at GTN
Jubiliant Engg.Ltd., one of GTN's group company,
sends materials to GTN for certain processes. The
materials will be returned after completion of the said
processes. The cost of work done is to be debited
according to the no.of processes completed at GTN.

6.2 Machining & Other processes done by JEL for GTN.

07/07/2020 3 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)
6.2.1 Material sent by GTN for processing at JEL. GTN sends materials to JEL for certain processes.
The materials will be returned after completion of the
said processes. The cost of work done is to be
credited according to the no.of processes completed
at JEL.
Reports required
7 Costing Reports
7.1 Inventory Reports
7.1.1 Raw Material Stage 1) Stock Movement Reports should contain the
following transactions. RM stage
a) Opening Balance
b) Purchases
c) Issues(RMRS)
d) Closing Balance
7.1.2 WIP- At Plant Stage WIP at Plant stage should have the following:
a) Opening Balance
b) Receipts from RM stage(from Para 7.1.1)
c) Issues(SFPR)
d) Closing Balance
7.1.3 WIP- At Stores Stage WIP at Stores stage should have the following:
a) Opening Balance
b) Receipts from WIP(Plant) stage(from Para 7.1.2)
c) Issues(CRS)
d) Closing Balance
7.1.4 WIP- At Assembly Stage WIP at Assembly stage should have the following:
a) Opening Balance
b) Receipts from WIP(stores) stage(from Para 7.1.3)
c) Issues(JCR)
d) Closing Balance
7.1.5 Finished Goods & Sales Finished goods stage should have the following:
a) Opening Balance
b) Receipts from WIP(Assy.) stage(from Para 7.1.4)
c) Issues(Marketing Invoice)
d) Closing Balance
The above reports are generated category wise such as Valve bodies, Casing hanger, Development & Actuators
7.1.6 Inventory Control Reports Inventory control reports/levels such as Reorder
level, safety stock, EOQ, EBQ etc.
7.2 Product Reports
7.2.1 Cost Sheets Part wise/ Product wise Cost Sheet reports with
breakup details of RM cost, B'out cost, In-house cost,
Subcontract cost, Special Process cost, Assembly
cost, Painting cost, Indirect factory cost, Admn.cost
and any other relevant cost.

07/07/2020 4 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)
7.2.2 Department wise details Machine wise, Department wise details and their
performance report.
7.2.3 Costing P&L / Production Statement Costing Profit & Loss account along with
reconciliation with financial accounts.

07/07/2020 5 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 6 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 7 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 8 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 9 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 10 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 11 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 12 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 13 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 14 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 15 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 16 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 17 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 18 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 19 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 20 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 21 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 22 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 23 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 24 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 25 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 26 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 27 18:21:01
 Module: Costing (Controlling)

Rev
AS-IS BUSINESS PROCESS LIST TO -BE gap
Area Scen Gro Process Sub Process Explanation Remarks
ario up

Costing (Controlling)

07/07/2020 28 18:21:01