Landed Costing System for manufactured and bought-out (local & imported) finished goods

Kāladi Consulting did the design, development, integration (with SAP) and implementation of a web-based Landed Costing application using Angular JS framework.
Customer

Emzor Pharmaceutical Industries Limited, Nigeria

Business needs

Emzor had been manually doing the Landed Costing owing to limitations in the SAP application. Consequently the weighted average cost of the Finished Goods in the Item Master were in error, making it difficult to do contribution analysis.

The manual costing was done as and when Pricing decisions were to be taken and owing to volume of transactions not all consignments were being costed.

Kāladi solution

Kāladi developed an Angular, mySql-based web application to address Emzor’s challenges. Herein, various cost elements contributing to the Landed Costs (including parameters such as exchange rates, interest rates, overhead percentages, etc.), could be defined. Such cost elements were mapped, as applicable, to the various finished good Items.

 

Kāladi’s Formula or Rule builder enabled users to define the computation rules for the various cost elements, and specify the sequence or order of computation.

 

On receipt of finished goods against purchase or production orders in SAP, the cost element mapping and computation logic were interfaced from the web application. Then, Landed Cost was computed in SAP and cost sheets were created and sent back to the web application.

 

In the web application, the cost sheets could be reviewed by product, by consignment, by purchase or production order, and by time period. A pricing module, with rule builder for what if analysis helped in determining the prices based on defined margins or mark-ups, and the Prices once confirmed were sent back to SAP for updating the product price list.

Tools

  • AngularJS 6
  • Html, CSS
  • PHP
  • mySql
  • SAP

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