Explains cost flows in ERP systems and how they relate to product profitability and cash flow.
Programme Overview
This self-paced programme is delivered by our expert Bartosz Tyrała. Capacity costs can cause product profitability and cash flow to appear differently in ERP environments, creating contradictions that are difficult to interpret without understanding how costs flow. This programme explains capacity cost concepts, production order structures, allocation bases, and capacity utilisation. Learners progress from cost flows and cost centre roles, through cost group classification, activity allocation using machine and labour hours, normal capacity, and unused capacity, to cash flow versus costing distinctions and reconciling the two. Covering ten modules, the programme ends with the routine interpretation of ERP outputs and error avoidance.
Programme Structure
Key Module 1: Understanding Cost Flows in ERP Systems
Key Module 2: Cost Centres and Production Orders: Structure and Roles
Introduces cost centres and production orders as structures used to organise manufacturing costs.
Key Module 3: Cost Group Classification and Allocation Bases
Clarifies cost group classification and allocation bases as terminology within costing analysis.
Key Module 4: Activity Allocation: Machine Hours and Labour Hours
Outlines activity allocation concepts using machine hours and labour hours.
Key Module 5: Normal Capacity and Cost Behaviour in Manufacturing
Explains normal capacity and cost behaviour as concepts in manufacturing cost interpretation.
Key Module 6: Identifying and Accounting for Unused Capacity
Introduces unused capacity and how it is recognised within manufacturing cost concepts.
Key Module 7: Cash Flow Analysis: Inclusion and Exclusion of Costs
Clarifies how included and excluded costs affect cash flow interpretation.
Key Module 8: Cash Flow Vs. Costing
Explains the conceptual difference between cash flow and costing.
Key Module 9: Reconciling Costing and Cash Flow: Interpreting Contradictions
Outlines how costing and cash flow may show contradictions that need interpretation.
Key Module 10: Routine Interpretation of ERP Outputs and Error Avoidance
Clarifies routine ERP output interpretation and common error avoidance terminology.
Key features
Business Outcomes
Learners understand terminology for ERP cost flows, cost centres, production orders, allocation bases, machine hours, labour hours and capacity utilisation, and explain links to product profitability.
Is this right for you?
Use this learning when teams need a beginner-friendly explanation of capacity costs, product profitability and cash flow in ERP contexts, with shared terminology for routine ERP outputs and cost data.
Learning Impact
Shared understanding helps learners discuss manufacturing costs, capacity utilisation, product profitability and cash flow with clearer terminology across finance, controlling and manufacturing teams.