Module Integration in ERP: Production + Accounting

Overhead rates are defined by category — for example, equipment depreciation, or utilities — and applied automatically to production orders based on a configured allocation basis such as direct labour hours or machine hours. Rates can be updated as actuals differ from estimates.

The system supports percentage-of-completion based on costs incurred, physical progress milestones, and output-based measures. The method is configured at the Project contract level and applied consistently across the project's life.

Yes. Where a production order covers scope that is shared across projects, costs are allocated proportionally or by specific assignment. Each project receives its accurate share of the production cost, and the allocation logic is documented in the production order record.

The integration ensures that costs and revenues are matched and recognised in the correct period, that WIP is valued consistently, and that every transaction has a documented trail from production order through to the financial statements. This supports the accurate period reporting and cost substantiation required for UAE Corporate Income Tax compliance.

Costs incurred to date are held in WIP at their actual value. No further costs are accrued. When the project resumes, accumulation continues from where it stopped. If the project is cancelled, the WIP balance is reviewed and written off or recovered according to the contract terms and the company's accounting policies.