![\"Manufacturing](\"https:\/\/bahtera.jp\/wp-content\/uploads\/2026\/08\/asset-account-en.png\")
Manufacturing account relationship diagram<\/p><\/div>\n
In manufacturing cost accounting, confusion often arises between manufacturing cost, cost of goods sold, and selling and administrative expenses. Manufacturing cost is the cost of products completed in the current month, cost of goods sold is the manufacturing cost of sold products (a mix of beginning inventory and current month completions), and selling and administrative expenses incurred when selling products are outside the cost of goods sold.<\/p>\n
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- Beginning material inventory + materials purchased during the month – ending material inventory = current month material cost<\/li>\n
- Beginning work-in-progress inventory + current month material cost + current month processing cost – ending work-in-progress cost = manufacturing cost<\/li>\n
- Beginning product inventory + manufacturing cost – ending product inventory = cost of goods sold<\/li>\n
- Sales – cost of goods sold = gross profit<\/li>\n
- Gross profit – selling and administrative expenses = operating profit<\/li>\n
- Operating profit – non-operating expenses = ordinary profit<\/li>\n<\/ul>\n<\/div>\n
Japanese manufacturing companies in Indonesia are constantly in an environment with high demand fluctuations. Prioritizing efficiency for productivity improvement increases the risk of delivery delays, while focusing too much on delivery times can lead to more setups and decreased production efficiency.<\/p>\n
I believe that finding the optimal value to achieve these two conflicting paramount objectives through IT is the main goal of digital transformation in manufacturing.<\/p>\n
In production management system implementation projects in Japan, there is a tendency to add functions to fit the company’s operations even at high costs. In Indonesia, however, there is a trend towards requests for screen modifications to ease input by shop floor workers, reduce work burden, and add external data import functions within a limited budget.<\/p>\n
This blog aims to assist those in the Indonesian manufacturing industry who feel the need for systematization of production management operations but are unsure where to start, by providing articles about production management systems that help envision what a manufacturing system suitable for Indonesia might be.<\/p>\n
\nWhat this article covers<\/h2>\n
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- The ultimate goal in manufacturing is to improve productivity and meet delivery deadlines.<\/li>\n
- Understanding the differences between manufacturing cost, cost of goods sold, and selling and administrative expenses is important.<\/li>\n
- Account linkage diagrams are useful for cost calculation in manufacturing.<\/li>\n
- The purpose of DX is to optimize the trade-off between productivity improvement and meeting delivery deadlines using IT.<\/li>\n
- In Indonesia, system implementation is required within a limited budget.<\/li>\n
- The Hanafirst ERP explainer video shows how thorough lot traceability supports production-management DX and how to deploy only the functions you need, quickly.<\/li>\n
- The Product Trace Back demo shows how to trace shipment through raw materials and suppliers in one report and submit it for customer claims.<\/li>\n
- This hub is the Production Management entry for Indonesia Manufacturing DX, linking to ERP (Hanafirst), planning\/scheduling (Asprova), and shop-floor DX (IoT\/AI).<\/li>\n<\/ul>\n<\/div>\n