AI Manufacturing Cost Data Reconciliation Agent

How Cassidy automates period-end close and variance analysis using AI

Step 1: Trigger on close calendar or data sync

The Workflow activates automatically based on your close calendar schedule or when new ERP/MES data syncs—capturing production orders, confirmations, goods movements, and cost postings in real time.

Step 2: Normalize and enrich cost data

Cassidy harmonizes data across systems, mapping plant codes, item IDs, and UoM conversions while attaching standard cost rates and actual purchase costs to each consumption and production event.

Step 3: Match MES events to ERP documents

The agent performs record-level matching between MES production, consumption, and scrap records and ERP goods issues, receipts, and confirmations—flagging backflush gaps, timing differences, and duplicate postings.

Step 4: Calculate WIP and inventory rollforwards

Cassidy computes WIP as Beginning WIP + Manufacturing Costs − COGM, reconciles inventory subledgers (RM, WIP, FG) to GL balances, and isolates reconciling items like timing mismatches or unposted accruals.

Step 5: Generate variance analysis by category

The Workflow calculates total variance and splits it into input price, usage, resource efficiency, scrap, and lot size categories—aligned to your ERP framework—with drill-down by cost component, SKU, and production order.

Step 6: Surface exceptions with root-cause insights

Cassidy flags orders with yield deltas, abnormal scrap, negative WIP, or aged stuck orders, and generates root-cause hints such as BOM misalignment, incorrect backflush pointers, or UoM mismatches.

Step 7: Prepare journal entries and audit pack

The agent drafts journal entry proposals for inventory true-ups, variance allocations, and accruals—then assembles a complete audit pack with data lineage, reconciliations, and exception logs for external review.

Step 8: Human-in-the-Loop approval and posting

Before finalizing, Cassidy routes proposed journals and exception resolutions for review, keeping your team in control of business-critical close decisions while cutting manual reconciliation time from days to hours.