Costing for discrete manufacturing still remains an industry challenge, as guidelines to determine which cost accounting structure to use still do not exist. Manufacturers are experiencing challenges to perform due to the increased demand of products and rising prices for material and labor, all while industry profit margins remain under pressure. Because of these challenges, project-based costs continue to have a large financial impact, and manufacturers are struggling to stay competitive in today’s global marketplace.
Microsoft Dynamics AX and Manufacturing Costing
In order to thrive and meet global challenges, it’s essential to stay ahead of the technology curve. To do so, manufacturers need anenterprise resource planning (ERP) software solution that provides easy-to-use functionality. Microsoft Dynamics AX is a powerful and adaptable ERP solution that offers significant benefit. Dynamics AX is able to capture and store detailed data on cost estimates and transactions to produce summarized analytical reports. Dynamics AX can automate tasks related to cost processes for manufacturing companies, but the standard tools fall short in delivering break-outs on material, labor and overhead (MLO) costs.
To overcome this limitation, users often have to run multiple iterations of project and production order cost analysis reports through multiple levels to generate the desired information. However, a more efficient solution exists.
Cost Connect for Project-Based Manufacturing
A solution for Microsoft Dynamics AX, Cost Connect, has the ability to solve issues for both discrete and project-centric manufacturers. Cost Connect uses a robust methodology to explore transactional MLO details found in Item and Production Management areas within AX to assemble required analytical data.
Once this data is captured, Cost Connect provides users with multiple ways to review and extract this information for use in a variety of outputs. Cost Connect offers project-based and discrete manufacturers a wide range of benefits including:
- Understand your product costs, project costs, estimated values, actual values, variances and where those costs originate.
- Use details on MLO costs to adjust standards, evaluate estimates and compare actual expectations.
- Improve cost visibility and management for manufacturing-driven projects.
- Understand on-hand inventory valuations and the various cost components that contribute to those amounts.
- Increase confidence in the accuracy of the costing information generated by your Microsoft Dynamics AX system.