Statement: a correct cost price per hour for man and machine leads to insight into the order and operating result. Experience shows that in practice the order and operating result almost never match. You can prevent this. MKG contains the BCO module for this purpose: budgeting, control, optimizing. In this webinar you will be introduced to BCO. In half an hour you will be taken through the steps you need to take in MKG to create a realistic budget and an executable operating plan.

Coverage is about covering your direct and indirect costs based on your cost price. The goal is to use a cost price that covers all incurred and future costs.

BCO helps you to increase your insight into the financial situation of your company and puts you in a better position to determine your cost price. Do you have knowledge of cost prices and do you know the BCO modules? In this article you will find a step-by-step plan to easily set up BCO.

Once BCO has been set up, you can start monitoring the budgets. The various BCO Dashboards serve this purpose. Budget control based on these dashboards is central to this article. In addition, a number of scenarios arising from the design of BCO are discussed.

Before you start with BCO, it is important to have the administration settings correct. On the Price Structure tab you will find the settings that are relevant for the BCO design. Of particular importance are the settings about Coverage and Operations.

BCO stands for Budgeting, Controlling, Optimizing. BCO helps you increase your insight into your company's financial situation and enables you to better determine your cost price. By budgeting your hours and costs now, you will fully cover your business expenses for the coming year with direct and indirect hours, and you will maintain the alignment between order result and business result.

Based on the allocated budgets for all employees and all operations, you fill in the Occupancy Plan, a matrix in which you indicate who is expected to do what for the coming year. You use the Coverage Plan to divide all costs, except labor costs, over the direct and indirect operations and to divide all indirect hours over the direct operations.

The standard dashboard 'BCO Coverage and Occupancy Monitoring' can be used to monitor the extent to which the set budgets correspond with the realized direct hours, the man-machine ratio, and the coverage. This also allows monitoring of the extent to which costs are covered by the realized direct hours. These are visible both graphically and in grids.

You use the administration cross tab to create links between administrations. This way you can book hours in one administration that are then accounted for on a production order in the other administration.

For setting up the financial administration, the administration settings for certain financial bookings are important or even decisive. This article provides an explanation of cost price booking, manual invoicing, installment invoicing, post-calculation, working without items, outsourcing, and 'Never anonymously from stock'.

Example entry 'Cost Price' in the 'Sales (process)' journal after executing the 'Cost Price Posting' action. Transaction type 03 Sales Cost Price.

To link actions in MKG's logistics processes to financial entries, you can use 4 process groups: for sales, purchasing, inventory, and production. The settings of the sales group(s) can be found in the 'Sales Groups' process table.

The Calculations module is used for creating preliminary calculations. You can use the module by incorporating a sales quote into the calculation or by creating an 'independent' calculation. In addition to materials, you add operations to a calculation. An outsourcing is considered an operation in MKG.

This article describes the administration settings on the 'General' tab. This tab contains the settings for 'Pricing'.

This article describes the administration settings on the 'Price structure' tab. On this tab you will find the standard settings for the price structure in MKG5, divided into 'Price structure', 'Operations', 'Items' and 'Distribution net price calculation'.

To link actions in MKG's logistics processes to financial bookings, MKG uses four process groups: sales, purchasing, inventory, and production groups. In this article: Sales Groups.

A rate adjustment is often implemented simultaneously with a fiscal year transition, if desirable and necessary of course. Different rates are available within MKG. For two types of rates of operations, net and billable rate, you can specify a price per hour, with which MKG calculates different prices.

The taskbar of Calculation Management contains several functions that are explained here.