Explains the purpose of production order costing and how ERP systems structure cost tracking within manufacturing environments.
Programme overview
This self-paced programme is delivered by our expert Bartosz Tyrała. Manufacturing organisations rely on ERP systems to track, allocate, and interpret production costs. Without a clear understanding of how costs are structured and recorded, production data is difficult to use effectively. This programme introduces the principles of production order costing and explains how costs are captured in ERP environments. Learners progress from planned cost estimation and material, labour, and overhead allocation, through to actual cost capture, WIP calculation, variance analysis, and order settlement. Covering nine structured modules, the programme builds practical understanding of how costing data supports the financial control of production.
Programme structure
Key Module 1: Introduction to Production Order Costing in ERP
Key Module 2: Planned Costs and Cost Estimation
Introduces planned costs and explains how organisations estimate production costs before execution using structured costing approaches.
Key Module 3: Material Costs in Production Orders
Explains how material costs are assigned to production orders and how material consumption is represented within ERP costing structures.
Key Module 4: Labour and Machine Costs: Activity Confirmations
Introduces labour and machine cost concepts and explains how activity confirmations are used to capture production-related costs.
Key Module 5: Applying Overhead Costs in ERP
Explains how overhead costs are applied within ERP systems and how indirect costs are allocated to production activities.
Key Module 6: Capturing Actual Costs During Production Execution
Explains how actual costs are recorded during production and how ERP systems represent cost accumulation during execution.
Key Module 7: Analysing Cost Variances in Manufacturing
Introduces variance analysis and explains how differences between planned and actual costs are identified and interpreted.
Key Module 8: Work in Progress (WIP): Calculation and Financial Impact
Explains how work in progress is calculated and how WIP values are represented within financial and production contexts.
Key Module 9: Order Settlement Processes in ERP
Introduces order settlement concepts and explains how production costs are transferred and finalised within ERP systems.
Outcome and impact
Business Outcomes
Learners understand production costing concepts used in ERP systems, recognise planned and actual costs are structured, and explain how cost elements, variances and settlements shape factory activity.
Is this right for you?
Suitable for organisations introducing ERP-based production costing, or teams in production, finance and operations who need a firm understanding of standard costs, variances and settlement processes.
Programme Impact
The programme creates a shared understanding of production costing and ERP terminology, supporting clear communication and more consistent interpretation of costing data in manufacturing environments.