Research On The System Of Cost Management Under The ERP Environment

With the development of modern information technology and the Computer-Integrated Manufacturing System (CIMS) being applied in large-scaled manufacturing companies, traditional cost management model and system gradually can not meet the needs of management. The new environment both inside and outside the business enterprise put forward a new request to the cost management. ERP is a result of the modern management thought, it embodies many advanced management among ERP software system, and it becomes brand-new management measure of modern manufacturing company. The modern management thought of ERP and the modern cost management idea and principle as well as enterprise's actual situation should unify. And we should have a highly effective use with enterprise's cost information to adapt the new environment and the new situation request. Then we will enhance the struggle ability of the enterprise. That is very much significant to the enterprise.The paper firstly summarizes and analyzes the former research fruits according to the systems of ERP and cost management. Secondly, we introduce the relevant theories of ERP and cost management system, and on the basis of this we make an analysis about basic ideas of combination and the dominances of different current cost management systems under the ERP environment. Thirdly, we build the new system of cost management under the ERP environment. At last, we prove the feasibility and important significance of this new system through an application case. Then the paper does some analysis according to the fact application situation, and discovers something needed to pay attention to and improve.In this paper, we compare the different traditional cost management models and systems under the ERP environment before we bring forward a new cost management system which is built on the effective fusion of Strategic Cost Management (SCM), Target costing and Activity-Based costing (ABC).The system builds a method of cost management which upwardly connects the enterprise strategy and downwards extends to the work process. It makes our country's modern enterprises adaptive to face the enterprise strategy and the work process.Although, this new system under ERP environment is not widespread popularized and applied, its new thought of construction has gradually been paid attention to by both here and abroad scholars. And the new system will have a good prospect for development.