easybaan® Costing

Using the easybaan® solution, the easybaan® golden company covers requirements in cost analysis.

Costing with the easybaan®  solution is used to calculate cost per post center, and hourly rate by production department.

Cost type accounting delivers all original costs, and all P&L accounts are posted to cost centers. So we have an overview of all expenses and their origins. Costs are split into direct costs, meaning those directly linked to the production process (usually materials and labor). Direct costs do not play any role in cost analysis, which is solely used for overhead costs.

Cost centers need to be separated into indirect cost centers and productive cost centers. Indirect cost centers are not directly linked to the production process. I.e. properties and building or workshops serving other cost centers can be defined as indirect cost centers.

Productive cost centers are those generating value in the company. Typically this will be the production department in a manufacturing company.

If a company knows the production department costs, it just needs to divide those costs by the number of hours the department is available to determine hourly rates. These hourly rates are part of the cost unit accounting.


In performing these calculations, an expenses distribution sheet (EDS) is delivered as a part of the easybaan® solution. The dataflow below gives an overview of how an EDS works.  Posted data is taken from the general ledger. Costs from indirect cost centers are allocated to the productive cost centers. By using the resource availability the hourly rate is calculated. This rate can be transferred to the BaanIV / BaanERP / ERP LN for operation rates in costing. From overhead costs in the material handling cost centers and the material consumption, labor costs, and labor overhead costs, the surcharges for cost pricing can be determined.



Please check this graphic for a simplified expense distribution sheet.