Design cost systems for ERP ODOO (Cost and profitability calculations and reporting)

By Dani Granero
In Controlling Tools
Mar 5th, 2018

Design cost systems for ERP (Cost and profitability calculations and reporting)

Most companies need to have a good cost system (accurate and reliable reports and calculations) to set sales prices, to obtain margins, to control overhead , to know the profitability of sales by product, customer, project, Process, channel, market, geographical area …

At INDAWS we are aware that the area of costs is a difficult issue to manage in companies that do not have specialized staff or do not have the resources to carry it on their own.

In order to be competitive today, good cost and profitability management is required, regardless of size, volume and sector.

For this reason, due to the great experience we have in the cost and management control area, we have specialized in the analysis, design, consultancy, development and start-up of cost systems integrated in the ODOO ERP, in web applications or even for certain types of reports applications with Excel spreadsheets.

The implementation of a cost system in the ODOO ERP, just like in any ERP in the market, does not only consist in the development or adaptation of some modules.

The cost system of each company is different according to the type of information it manages, according to its needs, according to the way it works and according to its and making decisions style.

First of all, we have to know the current situation of the company, we need to know the current information the company works and what are their needs.

It is necessary to know what is expected to be achieved with the system, and how the information will be used for control, analysis and decision making.

Also, is necessary to know whether to update information periodically or to work with information available in real time.

As can be seen in the following images there are many types of costs (standard cost, average cost, actual cost, last cost of purchase …), there are different ways of dealing with costs according to their behaviour and nature (direct, indirect, Fixed costs, liability centers, cost evaluations, costs of sales, cost drivers …) there are different calculation methodologies (direct costing, full costing, abc costing …) Different levels of detail of information and calculation (costs per product, costs per project, costs per process, costs per customer, costs per hour worked, costs per channel, costs per market …) as well as the different reports and tools of control that can be obtained for the control, analysis and decision making as (aggregate profitability report, detailed profitability report, analytical account of results, budgetary control, valuation of inventories, profitability on sales orders, simulators of all kind…)



Before designing the cost system, it is very important to know what is needed. Why we need the system.

Once the objective is clear and we know what the company currently works with, we proceed the design. How the information will be processed, what workflow it has, what processes and areas it affects, how it will be processed and how the information will be obtained.

Based on the design, the ERP is adapted with parameterizations, configurations, modules, code, adaptations, tools, applications …

And we show and train the company how to proceed and use the system to get the most out of the information.

The following images shown part of a cost system for a company that works by projects.

Click on the images to enlarge them










Do you need a cost system for your company?
Do you need a cost system for your ODOO ERP?
Contact us.


Dani Granero

Dani Granero

(ODOO Consultant and Controller)

Valencia – España

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