Decide what the figure needs to explain
Start with the decision the number will support. Specify the period, company, site and level of detail: product, order or another agreed unit. Record which costs are included. If a management report will be compared with accounting records, define the scope on both sides. A provisional figure for an open period should be clearly identified; even a correctly calculated number can mislead when its status is unclear.
Follow one example back to its sources
Choose a representative product or order before reviewing the full report. Trace the material movements, production confirmations and other source records included in its calculation. Compare quantities, units, dates and transaction status. List missing confirmations, reversals or unit differences separately. The aim is to explain how the figure was formed. A discrepancy is a starting point for investigation, not proof that the software calculation is wrong.
Read allocation rules alongside their business rationale
Identify the basis used to allocate indirect costs, the records it covers and any exceptions. A configured rule may no longer reflect the operation. Finance and production should be able to explain its rationale using the same example. Keep the source amount, allocation base and allocated total visible as separate values. Agree how an empty base or an unexpected amount should be handled rather than silently changing an assumption to make the output look plausible.
Check period boundaries and corrections
Near a period boundary, the transaction date and the time it was entered can differ. Include late confirmations, cancellations, returns and recalculations in the review. Agree with finance which period should reflect a correction. If rerunning the report is expected to change the result, the reason should be traceable. Document the closing sequence, which steps may need to run again and who approves the revised result.
Reconcile more than the final total
Matching totals do not prove that the underlying distribution is correct. Within the agreed scope, compare source amounts, allocated amounts and unexplained differences. Sample the breakdowns that matter to the decision, such as product, order or cost centre. For each difference, record the observation, a possible explanation, an owner and the next check. The relevant teams should agree the acceptance criteria; there is no single tolerance that fits every business.
Turn the review into a repeatable check
Keep the sources, calculation sequence and expected result for the example you have checked. Run it again after configuration or development changes, including a correction or incomplete-record case alongside normal operation. Record the scope of the change, unresolved questions and the acceptance decision. The review then leaves the team with a useful check for the next close or system change, as well as an explanation of today’s difference.
