A Global Forestry Company Optimises Production Costing with SAP
Executive Summary
Timestamp implemented an Absorption Costing model on SAP ECC to optimise production cost management for a global forestry company.
The solution automates costing processes, improves financial traceability and provides more accurate cost information to support business decision-making while strengthening control over direct and indirect production costs.
The Challenge
The organisation needed to implement an absorption costing model capable of accurately allocating production costs and providing greater visibility into manufacturing performance.
Although SAP and manufacturing systems were already in place, there was no integrated costing model to ensure accurate cost allocation, financial traceability and automated month-end costing processes.
The Solution
Timestamp designed and implemented a complete SAP Absorption Costing model using the SAP Activate methodology, covering design, implementation, validation and post-go-live support.
Costing Model
Configuration of cost centres, activity types, cost allocation rules and standard cost calculation to ensure accurate production costing.
Financial Automation
Automation of the Material Cost Ledger, month-end closing processes and direct and indirect cost control to improve the reliability of financial information.
End-to-End Delivery
Complete project delivery including functional design, configuration, testing, user training, technical documentation and post-go-live support.
Business Impact
Solution Scope
SAP CO and SAP PP
Implementation of an absorption costing model integrated with controlling and production processes.
SAP ECC and SAP MII
Integration with the existing SAP landscape to ensure consistent production and costing information.
End-to-End Implementation
Complete delivery using the SAP Activate methodology, including functional design, configuration, testing, training, go-live and hypercare.
The Client
A global leader in the forestry and wood products industry, operating internationally through an extensive industrial network. The company continuously invests in digital transformation initiatives to optimise manufacturing operations, strengthen financial management and improve data-driven decision-making.
