System and method for integration of material costs of a product

A computer-enabled method for integration of material costs for calculating material costs of a product based on purchase data, inventory data, and material consumption data, the method comprising the steps of:

• connecting a database server to a purchase management system, an inventory management system, and a production management system via a network for data transmission therebetween;
• obtaining purchase data from the purchase management system and storing the purchase data in a database by using a purchase data retrieval module installed in a web server;
• calculating unit purchase expenses and current purchase costs of a unit of each material based on the purchase data by using a current period purchase costs calculation module installed in the web server;
• obtaining inventory data from the inventory management system, and storing the inventory data in the database by using an inventory data retrieval module installed in the web server;
• calculating historical purchase costs of a unit of each material based on the inventory data by using a historical purchase costs calculation module installed in the web server, wherein the historical purchase costs calculation module calculates the historical purchase costs according to the formula CUHP=(AII+QP*CUP)/(QP+QIO), where CUHP stands for the historical purchase costs, AII stands for initial inventory value, QP stands for current period purchase quantity, CUP stands for the current purchase costs, and QIO stands for initial inventory quantity;
• obtaining material consumption data from the production management system and storing the material consumption data in the database by using a material consumption data retrieval module installed in the web server;
• calculating costs of each material consumed in the product based on the material consumption data by utilizing a material costs integration module installed in the web server, wherein the material costs integration module calculates the costs of each material consumed in the product according to the formula CCM=QWM*CUHP/Q, where CCM stands for the costs of each material consumed in the product, QWM stands for a quantity of consumed material, CUHP stands for the historical purchase costs of a unit of the material, and Q stands for production output;
• and
• summing up the costs of each material consumed in the product to obtain material costs of the product by using a purchase data summarizing module installed in the web sewer;
• and
• returning the material costs of the product to a client terminal of a company by using the web server.