Implementation of a Process Costing System integrated with an Enterprise Resource Planning (ERP) System

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Jakarta— ERP Integration Makes Process Costing Faster and More Accurate in Manufacturing. Research conducted by Anneke Pratiwi1*, Suci Niawati Elisabet Sitohang2, Ira Elisabeth Meysah Sihombing3, Rismah Ayu Widodo4, Ivonny Ade Maria Tamonob5, Novi Alvionita6, Santi Alfitri7, Khofifah Nurul Aulia8 published in January 2026 in the Contemporary Journal of Applied Sciences (CJAS).

Research conducted by Anneke Pratiwi1*, Suci Niawati Elisabet Sitohang2, Ira Elisabeth Meysah Sihombing3, Rismah Ayu Widodo4, Ivonny Ade Maria Tamonob5, Novi Alvionita6, Santi Alfitri7, Khofifah Nurul Aulia8 highlights how ERP reduces manual input errors, accelerates production cost reporting, and strengthens transparency of cost flows across departments—an increasingly critical advantage for manufacturing companies operating in continuous, high-volume production environments.

Manufacturing is one of the most demanding sectors in terms of efficiency. Production lines run continuously, materials move quickly, and management decisions often need to be made within hours—not days.

Yet many manufacturers still rely on manual cost recording or disconnected systems that do not communicate with each other. The result is familiar across the industry: late reports, inconsistent data between departments, and a high risk of human error.

This is the core problem addressed in a recent study by a research team from Universitas Bina Sarana Informatika, who argue that ERP integration is one of the most practical answers to modern manufacturing cost challenges.

ERP: A Single Integrated System Connecting Production, Inventory, and Finance

ERP is described in the study as an integrated information system that connects a company’s core functions—production, inventory, purchasing, and finance—within one platform supported by a centralized database.

With ERP, data generated from production activities can be recorded and accessed across departments in real time.

The authors emphasize that ERP creates a single source of truth, meaning one primary data source that reduces conflicts and inconsistencies between departments.

ERP Makes Process Costing Automatic and Real-Time

The study’s main insight is that when process costing is integrated into ERP, the three main production cost components can be recorded automatically:

• raw material costs,
• direct labor costs,
• and manufacturing overhead.

ERP enables this through interconnected modules such as:

• Production Planning (PP),
• Materials Management (MM),
• Controlling (CO),
• and Financial Accounting (FI).

This integration allows costs that previously required manual recap to be calculated automatically, including unit cost calculations.

According to the study, this automation:

·         reduces input errors,

·         speeds up reporting,

·         and improves the reliability of production cost information.

ERP Strengthens Audit Trails and Cross-Department Transparency

Another major advantage highlighted is transparency.

In manual systems, cost flows across departments can be difficult to trace because information is spread across multiple documents or applications.

ERP, however, records each transaction with a clear digital trail (audit trail), making it easier to:

• conduct audits,
• strengthen internal cost control,
• and monitor cost variances faster.

This transparency becomes essential for companies under strong efficiency pressure and strict compliance demands.

ERP Is Not Only for Large Companies

The study also points out that ERP does not always mean expensive systems such as SAP or Oracle.

Several ERP solutions can also be adopted by small and medium enterprises, including:

• Odoo
• Zahir ERP

Meanwhile, larger corporations tend to use SAP and Oracle because of their complex modules and strong controlling and production planning features.

Real Impact: Faster Decisions and More Reliable Data

The article concludes that integrating ERP into process costing produces real operational benefits, including:

• improved efficiency,
• faster reporting and closing processes,
• higher quality cost information,
• and stronger support for timely managerial decision-making.

With real-time cost data, companies become better prepared to handle:

• daily cost control,
• production efficiency evaluations,
• selling price adjustments,
• and resource planning.

The researchers also recommend that companies focus not only on purchasing ERP systems, but also on preparing human resources through continuous training and maintaining high-quality master data to ensure ERP outputs remain accurate.

Author Profiles

• Anneke Pratiwi -  Universitas Bina Sarana Informatika
• Suci Niawati Elisabet Sitohang - Universitas Bina Sarana Informatika
• Ira Elisabeth Meysah Sihombing -  Universitas Bina Sarana Informatika
• Rismah Ayu Widodo -  Universitas Bina Sarana Informatika
• Ivonny Ade Maria Tamonob- Universitas Bina Sarana Informatika
• Novi Alvionita - Universitas Bina Sarana Informatika
• Santi Alfitri -  Universitas Bina Sarana Informatika
• Khofifah Nurul Aulia - Universitas Bina Sarana Informatika
  

Research Source

Pratiwi, A., Sitohang, S. N. E., Sihombing, I. E. M., Widodo, R. A., Tamonob, I. A. M., Alvionita, N., Alfitri, S., & Aulia, K. N. (2026). Implementation of a Process Costing System integrated with an Enterprise Resource Planning (ERP) System.
Contemporary Journal of Applied Sciences (CJAS), Vol. 4 No. 1, Januari 2026, hlm. 1–10.
DOI:https://doi.org/10.55927/cjas.v4i1.114                                                                                        URL Resmi: https://ntlformosapublisher.org/index.php/cjas