Inventory valuation is a critical component in calculating Cost of Goods Sold (COGS), which ultimately determines your organization’s profitability. For many industries with complex processes, finance teams must expand beyond ERP tools and establish a flexible inventory valuation approach that can offer both historical and forward-looking answers to evaluate profit performance and predict outcomes.
With the ImpactECS platform, you can maintain multiple inventory valuation methods and calculate answers for individual production stages, estimated product demand levels, external process requirements, SKU proliferation, or product obsolescence. By connecting production, inventory management, and general ledger volume data, you can accurately and dynamically calculate inventory values and eliminate unreliable spreadsheet analysis. With more transparent and traceable processes, you can make better informed purchasing decisions, improve customer or vendor negotiations, or even change customer behaviors.
To tackle the challenge of getting more accurate, detailed and actionable cost information, finance and technology teams must work together. But what exactly does that mean in this age of digital transformation? And why is advancing your cost system processes and capabilities such a critical step?
Join our live conversation with corporate manufacturing accounting team from Shaw Industries and learn why they started their journey to a better product cost system over a decade ago, and how they’ve evolved into a fully-integrated costing analytics program that supports a wide range of corporate initiatives.