# Manufacturing Module

IFRS Compliant Cost Accounting System

IAS 2 IAS 16 IAS 38 IFRS 15

## Overview

The enhanced Manufacturing module provides a comprehensive, IFRS-compliant cost accounting system designed to handle both tangible and intangible products. This system supports advanced cost allocation methods and adheres to international accounting standards for proper financial reporting.

## Key Features & Improvements

### IFRS Compliance Dashboard

##### IAS 2 Compliance

Inventory valuation for tangible goods

##### IAS 38 Compliance

Intangible asset accounting

##### IAS 16 Compliance

Property, Plant & Equipment allocation

##### IFRS 15 Integration

Revenue recognition for digital products

### Multi-Product Type Support

##

- Raw material cost tracking
- Direct labor cost allocation
- Manufacturing overhead distribution
- Work-in-progress (WIP) inventory management
- Standard inventory valuation methods

##

- Airtime/Phone Credits: Platform costs, commission tracking
- Software Applications: Development, licensing, and maintenance costs
- Digital Content: Creation, distribution, and marketing costs
- Subscription Services: Operating and customer acquisition costs

##

- Software Licenses: Acquisition and implementation costs
- Patents & Trademarks: Legal and registration costs
- Development Assets: R&D capitalization
- Intellectual Property: Valuation and amortization

### Advanced Cost Allocation Methods

###### Direct Cost Assignment

Direct allocation to specific products

###### Activity-Based Costing (ABC)

Cost drivers and activity pools

###### Standard Costing

Predetermined costs with variance analysis

###### Job Order Costing

Project-specific cost tracking

###### Process Costing

Continuous production cost averaging

### Real-Time Analytics & Reporting

##### Interactive Charts

- Cost Breakdown Analysis: Bar chart showing cost categories
- Product Type Distribution: Doughnut chart of product mix
- Cost Allocation Summary: Pie chart of allocation methods

##### Summary Metrics

- Raw Materials Total
- Direct Labor Costs
- Manufacturing Overhead
- Intangible Assets Value
- Work-in-Progress Inventory
- Total Production Costs

## Data Management Examples

### Tangible Goods

{ type: 'tangible', rawMaterialCost: 50.00, directLaborCost: 25.00, manufacturingOverhead: 15.00, totalUnitCost: 90.00, inventoryValue: 4500.00 }

### Digital Products

{ type: 'digital', category: 'airtime', developmentCost: 5000.00, platformCost: 1000.00, marketingCost: 2000.00, operatingCost: 500.00, revenueModel: 'commission' }

### Intangible Assets

{ type: 'intangible', acquisitionCost: 10000.00, licensingCost: 2000.00, implementationCost: 3000.00, usefulLife: 5, amortizationMethod: 'straight-line' }

## Benefits & Value Proposition

#### Compliance

- IFRS Standardization
- Complete Audit Trail
- Regulatory Reporting
- Financial Transparency

#### Operational

- Better Cost Control
- Data-Driven Decisions
- Efficiency Tracking
- Scalability

#### Strategic

- Product Profitability
- Resource Optimization
- Cost Benchmarking
- Investment Planning

## Financial Reporting Features

Cost Center Analysis

- Departmental cost allocation
- Activity-based cost distribution
- Overhead absorption rates

Product Profitability

- Unit cost calculations
- Margin analysis
- Break-even analysis

Variance Reporting

- Standard vs. actual comparison
- Material, labor, overhead variances
- Performance metrics

Inventory Valuation

- FIFO, LIFO, weighted average
- Lower of cost or market adjustments
- Obsolescence provisions

## Workflow Integration

### Product Creation Process

1. Product Type Selection: Choose from tangible, digital, service, license, or intangible
2. Cost Structure Definition: Set up relevant cost categories
3. Allocation Method Selection: Choose appropriate costing method
4. Initial Cost Entry: Record baseline costs
5. Ongoing Cost Tracking: Regular cost updates and adjustments

### Cost Entry Workflow

1. Product Selection: Choose existing product
2. Cost Type Classification: Select appropriate cost category
3. Allocation Method: Specify cost allocation approach
4. Quantity & Unit Cost: Enter detailed cost information
5. Documentation: Add notes and supporting information