Integration of material flow cost accounting and ERP software

Material flow cost accounting (MFCA) is an effective environment management tool which can visualize any waste so as to reduce the waste in the production process. However, cost allocation method of material flow cost accounting adopted in Japan is a little inaccurate and cumbersome for Chinese accountant. This study developed the modified MFCA which divided system and energy cost into those for waste disposal and for production, and record negative product from three subjects which are defective product, positive product and waste, also give calculation method of them. To simplify MFCA calculation tool and improve data handing in further, this study integrated MFCA theory into software of Enterprise Resource Planning (ERP).