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Kindly circulate the below decisions from the Management End.
1. Costing Approach - Concurred by Sonata and KPMG that the approach is Okay. The control account to be used for Costing purposes have been included in the Chart of Accounts -COA.
2. Costing UAT - Costing UAT to be done initially based on the expenses booked by cost center in GL in the absence of entries coming from Payroll and Fixed Assets . Once these modules are up, Costing to be tested again from complete flow perspective. Testing shall not be stuck for the accuracy of data.
3. Direct Labour resources to be bifurcated by Operations and separate Cost Component Class to be created for each Labour Resource. - Costing Team to confirm the same with Head of Manufacturing.
4. The feasibility of including Labor Overtime as a separate resource. To be confirmed by Costing and Manufacturing.
5. LCM Charges to be defaulted based on the item Category - to be included in Solution design by KPMG. For this a personalization/customization will be required.
6. Indirect Cost Allocation - Allocation sheet to be circulated by KPMG. To be confirmed by Sonata.
7. Product wise Contribution Margin - Not required in the present scope.
8. Manufacturing Budget - Manufacturing budget will loaded as a whole and not Cost Center wise at present, at the year end Cost Center wise budget will be prepared based on Actuals.
9. Day 1 Reports - Supplier Ledger report and other additional formats required will be included as Day 1 Reports. Finance to provide the updated list and formats.
10. Cost Centers in Costing: Apart from the previous cost centers.
-Three Packaging Cost Centers are added: Primary Packing (Sterile), Primary Packing (Non sterile), Secondary Packing to segregate Sterile and Non Sterile Packing Cost.
-Product and Process Engineering cost center is added under manufacturing -PPIC is added under manufacturing
- Product Development is created as a separate cost center to accumulate the product cost
11. Payroll Costing Approach: High level Payroll costing approach is finalized.
Direct Labor cost will be segregated by Cost Centers Manufacturing Administrative and Supervision Cost will include the cost of Production Officers Non-Manufacturing Admin and Sup cost will go to the respective departments (Such as Finance & Accounts, IT etc.)
12. PF, Loan and WPPF/WF.
The solution approach for the above was discussed and finalized.
PF: Separate books will be maintained at GL level. Employee wise PF schedule will be maintained in Payroll.
WPPF/WWF: Separate financial statements will be generated for these.
Loans: Loan disbursement in AP-Accounts payable followed by Loan Deduction in Payroll (Detailed documents for these areas to be shared for review)
