How to Use Microsoft Dynamics GP for Accurate Manufacturing Variance Reporting
Posted on: July 29, 2020 | By: Guy Logan | Microsoft Dynamics GP
As a manufacturer, it is critical to effectively and accurately measure your manufacturing variance. Manufacturing variance is the difference between your planned costs versus your actual costs.
In the past, measuring manufacturing variance meant taking in product class or type into account and reporting was daily, weekly or quarterly. Today, measuring manufacturing variance can be refined to just the line items per order, and reporting can be instantaneous. Understanding your manufacturing variance in real-time at a detailed transaction level empowers you to quickly identify problems. That leads to faster response, decision making, and ultimately, a competitive advantage.
To measure your success in measuring manufacturing variance, you need to consider several factors. These include understanding your sources of data, data collection technology, and integrated reporting design. The challenges of accurate manufacturing variance reporting are multi-dimensional. But that doesn’t mean they’re impossible to tackle. Microsoft Dynamics GP’s Manufacturing Module provides a very powerful tool in their Manufacturing Order Variance Window.
The Manufacturing Order Variance Window from Microsoft GP allows you to view the variance information for any Manufacturing Order. This means you can compare estimated and actual costs for materials, labor and machine time, and associated overhead costs. Through this data, you can quickly identify where discrepancies may have occurred within the Manufacturing Order life cycle. This leads you one step closer to gaining an advantage against your competitors and cutting costs as needed through the power of Microsoft GP.
Logan Consulting can help you create custom designed reports that provide historical data of all Manufacturing Orders over a given period of time to help with a comparison analysis for more accurate reporting. We also provide integrated reports that combine cost variance data with sales revenue information for a full-burden cost analysis.
Next Steps
Want to learn more about what Logan Consulting can do for you? Talk to us today to start understanding your manufacturing variance and getting accurate reporting through Microsoft Dynamics GP.