+86 400-623-3007
中文/EN
MTC · Industry Depth, Global Breadth
SAP Business One · Production Module

Production & MRP · Cost Accounting: Finally solve the "can’t figure out cost" problem

In SAP Business One (B1), material requirements are auto-calculated, production orders run under control, and cost accounting goes down to process level; the gap between standard and actual cost is crystal clear.

Book a Demo

Which 5 real pain points does this module solve?

Scheduling by experience, material shortages

Planners schedule by gut feel; material shortages only discovered at production start, emergency procurement costs high.

Cost unclear, only estimated after the fact

Production costs can only be estimated after completion. Gap between standard cost and actual cost is unknown.

No WIP or labor hour data

Work-in-progress quantities unclear during production, process time not recorded, capacity bottlenecks impossible to find.

BOM version chaos

Bill of materials version management is chaotic, old and new versions coexist, wrong materials issued regularly.

Subcontracting cost is a black box

Outsourced processing fees and auxiliary material consumption have no systematic records. Subcontracting cost relies on estimation.

Core Feature List

Production Planning

  • Bill of Materials BOM (Version Control)
  • MRP Material Requirements Planning
  • Production Order Management
  • Capacity & Scheduling

Cost Accounting

  • Process-Level Cost Collection
  • Standard Cost Setup
  • Actual Cost Calculation
  • Standard vs. Actual Cost Variance Analysis
  • Work-in-Progress (WIP) Management

Process Management

  • Process Reporting & Labor Hour Records
  • Subcontracting Management
  • Rework & Scrap Handling
  • Production Reports & Efficiency Analysis

Integration Logic with Other Modules

MRP CalculationLinks to purchase suggestions
Production IssueInventory deduction
Production CompletionCost posted to finance
Sales OrderTriggers production order (MTO)

Typical Usage by Industry

IndustryDifferentiated Usage of Production Module
Discrete ManufacturingProcess-level cost collection, standard vs. actual cost variance analysis, subcontracting management.
Chemical/Process MfgFormula management (Recipe), co-product & by-product cost allocation, batch-level collection.
High-Tech/SemiconductorFull batch & serial number tracing, kit management, work order cost accurate to batch level.

FAQ

Can SAP Business One’s cost accounting be accurate to the process level?
Yes. B1’s production module supports process-level cost collection: direct labor, machine hours, and auxiliary material consumption for each process can be collected separately, then aggregated into the finished product cost. This is one of its biggest advantages over entry-level ERPs.
How is standard vs. actual cost variance analyzed?
B1 automatically calculates the variance between standard cost and actual incurred cost when a production order is closed, generating a variance analysis report. You can view over-consumption or savings by process, by material, or by production order, helping drive continuous cost improvement.
How is subcontracting cost calculated?
Subcontracting orders are managed as special production orders in B1. Outsourcing fees are recorded as cost items, merged with internal process costs to form the complete production cost. Material issue and receipt for subcontracted materials also have corresponding inventory transfer records.

Book a Production Module Demo

See how MRP runs, how process costs are collected, and how variance analysis works.

Book a Demo