← All case studies
ERP Sanitized 2024 — Present

Manufacturing ERP — HPP & Finance Reconciliation

Clarifying production cost (HPP), inventory movement, and the accounting view into one consistent management story for owner-level decisions.

RoleIT Project Manager · IT Business Partner
ClientManufacturing group
StackCommercial ERP · PostgreSQL · Spreadsheet modeling · BI dashboard

01 Problem

Business Context

A manufacturing and ERP environment where production, inventory, purchasing, receiving, and accounting reports need to tell a single, consistent management story.

Why it mattered

Management was interpreting production HPP as sales HPP, while accounting / laba-rugi reflected inventory movement, sales timing, valuation, and finance entries — producing two numbers that looked contradictory to owners.

Problem Statement

Production HPP and the accounting laba-rugi view diverged in management reporting, eroding trust in the ERP numbers and slowing month-end decisions.

02 Solution

A reconciliation layer that maps operational data (production, inventory, receiving) to finance posting and makes the legitimate timing and valuation differences explicit and explainable.

Objectives

  • Separate the production-cost view from the accounting / laba-rugi view
  • Make inventory movement and timing differences explicit and traceable
  • Produce an owner-friendly reconciliation narrative
  • Design a reporting structure the ERP can sustain monthly

Architecture / Topology

Production / HPP Inventory & Valuation Finance Posting Reconciliation Layer Management Report
Production / HPP cost view Reconciliation Layer
Inventory & Valuation movement Reconciliation Layer
Finance Posting posting Reconciliation Layer
Reconciliation Layer reconciled Management Report
Manufacturing ERP — HPP & Finance Reconciliation architecture diagram

Implementation Agile / Sprint

  1. Sprint 1Done2 weeks

    Discovery & Process Mapping

    Map production-to-finance flow and locate divergence points.

    • As-is process map
    • Gap list
    • Stakeholder interviews
  2. Sprint 2Done3 weeks

    Reconciliation Logic Design

    Define how production cost reconciles to the accounting view.

    • Reconciliation model
    • COA / HPP framing
    • Validation rules
  3. Sprint 3In Progress2 weeks

    Management Reporting

    Translate logic into an owner-friendly dashboard narrative.

    • Report layout
    • Owner walkthrough
  4. Sprint 4PlannedOngoing

    Adoption & Monthly Cadence

    Embed the reconciliation into the monthly close.

    • SOP
    • Close checklist

Selected Visuals

03 Role

IT Project Manager · IT Business Partner

Stakeholders

Owner / LeadershipFinance & AccountingProductionERP VendorIT

04 Tech / Tools

Commercial ERPPostgreSQLSpreadsheet modelingBI dashboard

Key Components

  • ERP core
  • Production / HPP module
  • Inventory & valuation
  • Finance posting (laba-rugi)
  • Management reporting layer

05 Business Impact

Production and finance numbers now reconcile to one explainable story, shortening management review and rebuilding trust in the ERP output.

Reduced manual reconciliation effort between production and finance.

Improved operational visibility into cost vs. accounting views for management.

Established a repeatable, documented month-end reconciliation step.

Improved communication between finance, operations, and leadership.

06 Evidence Policy

Sanitized

Sanitized narrative only. No financial figures, COA detail, vendor issue logs, or raw ERP screenshots are published. Detailed artifacts available upon request under NDA.

No credentials, server IPs, internal production URLs, financial figures, or confidential documents are shown. Detailed artifacts are available upon request under NDA.