EVMS Guideline 21 Design Considerations - Material Accounting System

ANSI Standard 748 Guideline 21 requires the organization's material accounting system to provide for assignment of actual costs to associated control account budgets. In addition, the material accounting system facilitate performance measurement by attributing actual costs at the most suitable point in time after the time of progress payments or actual receipt of material. The material accounting system must account for all purchased, including residual materials. This adherence of actual costs with performance provides for realistic performance measurement and forecasting. In developing its Guideline 21 system description document, the organization should author procedures ensuring:

The organization has recognized and acceptable costing techniques for accurate material cost accumulation and assignment to control accounts in a manner consistent with the time-phased budgets

The organization reports material costs within the same period as that in which Budgeted Cost of Work Performed is earned for that material

The organization assigns the point in time most suitable for material cost performance measurement (no earlier than the time of actual receipt of material)

The organization determines cost variances that are attributable to the excess use of materials

The organization provides unit or lot costs when applicable

The organization maintains records to show full accountability for all material purchased for a contract, including residual inventory

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