Finance controlling of Material costs

Understand the typical production plant layout and material movements from inbound warehouse and semi-finished production to packaging, finished goods, and outbound distribution.

Explore confectionery plant layout, showcasing inbound warehouse, nut plant, two production lines (fint and step), palletizer, outbound warehouse, and regional distribution center, with nut-free and peanut-containing products and material flows.

Align your finance controlling with IFRS-based rules while noting local variations; this course emphasizes controlling rather than accounting, and highlights inventory accounting and stock measurement considerations.

Explore material types in accounting, from raw materials and packaging to finished goods, semi-finished products, consumables, spare parts, and work in progress.

Learn how a bill of materials (BOM) lists exact quantities of ingredients to produce a specific product, and how losses can affect BOM totals for finished and semi-finished goods.

Explore the list of seven materials for the chocolate plant, from raw peanuts to the fried peanut semi-finished product, and note the standard material costs concept.

Explore the bill of materials for chocolate products, comparing standard and actual recipes and their alternatives across 2022–2023, and assess financial impact using standard costing and variance analysis.

Watch the start-up production run of fried peanuts, from raw peanuts through oven frying, filtering, drying, and salt addition, to final processing for the Fint chocolate bar.

Join the first production run on the Fint production line, observe caramel and peanuts, cutting and coating machines, cooling, packaging, and readying chocolate bars for palletized shipment.

Understand material movements and their financial impact: receptions increase stock and transfer ownership, internal movements shift location, consumption reduces stock. Learn about production, dispatch, write-offs, and inventory stock takes.

Learn the seven material movement types across inbound, production locations, and not planned locations—receptions, internal movements, consumption, goods production, stocktake, write-offs—and how they affect inventory value and revenue.

Compute closing stock by tracking opening stock, inflows, and outflows, assign a monetary value to material quantities, and use closing stock for slow moving provisions and low commission provisions.

Use pivot tables to analyze daily material movements and spot anomalies in stock and postings. Build monthly datasets, verify who entered data, and collaborate with operations to resolve discrepancies.

Learn how factory IT/IS systems shape material cost control by linking a reporting system with a factory management system, and manage data transfers, frequency, and triggers.

Explore standard costing, standard material costs, and standard prices; compare planned versus actual costs and analyze quantity and price variances to measure efficiency.

Explore how standard costing links a bill of materials to material and conversion costs for a 1,000 kg batch of product A in a chocolate plant.

Learn how to compute standard material costs for chocolate products using BOMs, standard prices, and batch-based division, with 2022 and 2023 price updates and the role of historical purchases.

Explore how finished goods sales, volumes, and price changes for Fint and Step affect revenue, including price elasticity and pivot table insights from dispatch data.

Understand seasonality to optimize inventory, cash flow, capacity planning, and pre-build stock, while analyzing top customers, pareto-driven product mix, and risks from slow-moving inventory or write-offs.

Analyze the chocolate factory's purchasing activity with a dynamic pivot table, compare actual prices to the standard price, and calculate purchasing price variance (PPV) within the standard costing framework.

Identify the main materials driving purchases, map suppliers, and manage currency risk, lead times, and inventory to improve cost control and cash flow through forecasting and variance analysis.

Learn how finance controllers analyze material purchases with pivot table data, allocate costs from invoices, broker and customs fees, and logistics, and investigate supplier changes and price trends.

Apply the matching principle in accrual accounting to align expenses with earned revenue, as the chocolate factory’s October shows zero raw material costs when no revenue is earned.

Apply the matching principle to raw materials and production by linking purchases, consumption, and dispatches to standard costs, and explain negative PPV and stock revaluation.

Explore write-off costs in a chocolate factory, covering raw materials, batch-level data, and finished goods, plus storage conditions and expiration dates to protect the P&L.

Explore periodical stock takes, their types and scope—from complete to selective—driven by legal or voluntary reasons, with cycle counts, blind counting, and A/B/C material grouping.

This lecture explains how IAS 2 prescribes valuing inventories at the lower of cost and net realizable value, outlining cost of purchase and restating standard cost to cost of purchase.

Learn stock revaluation under IAS 2, adjusting inventory from standard costs to actual prices using FIFO or weighted average, including raw materials and finished goods via BOM.

Perform a stock re-evaluation for a chocolate plant, updating closing stock with re-stated costs, using actual purchase prices, standard costs, and PPV to ensure proper matching in the P&L.

Update month-end revaluation reveals a new standard cost, causing a minus 20 adjustment as end-of-month quantity multiplies the December–November standard cost difference, altering the P&L.

Explore the locom provision and net realizable value under IAS 2, applying historical selling prices to adjust inventory and recognize impairment losses, with automatic reversals when stock declines.

Apply a slow moving inventory provision policy under international standards to estimate future inflows, classify stock, and compute accruals and pnl impact with a chocolate factory example.

Explore stock valuation under the lower of cost or net realizable value, compare cost of purchase with net realizable value, and examine reevaluation and slow-moving reserve implications.