Cost accounting

Cost accounting

Axional ERP/Finance – Cost Accounting provides companies with the ability to aim for more precise resource control and decision-making. In order to achieve these goals, it’s essential to focus analysis on the cost/revenue distribution that a company generates from:

  • The set of goods manufactured/sold, or the portfolio of services offered.
  • Multiple departments.
  • Customer segmentation, product lines.
  • Other business units or cost centers.

 

Thanks to this analysis, you will have enhanced knowledge of the costs associated with each product, department, customer, etc., comprehending the degree of profitability of each of them.

Axional ERP/Finance – Cost Accounting constitutes a unique must-have support tool for decision-making. It provides wide-ranging, reliable insight on the costs of your business activities.

It allows companies to analyze performance of each business unit under consideration by providing multidimensional information on the structure of revenue, costs, sub-activity costs, margins and performance of each business unit in your enterprise: division, branch, department, product line, etc. Furthermore, companies can deal simultaneously with multiple costing systems, obtaining different income statements for each system.

Different cost allocation methods will allow you to carry out detailed supervision of expenses through direct cost allocation schedules based on percentages, reallocation of indirect and overhead costs calculated by various methods, or automatic cost distribution structures.

Furthermore, indirect costs coming from any organizational unit will not pose any difficulty when determining their final allocation, using costing techniques such as ABC.

Axional ERP/Finance – Cost Accounting defines cost distribution programs by specific cost centers and accounts, allowing companies to deploy a managerial approach focused both on profit and investment centers. It also facilitates precise control of the costs of delivered services, manufacturing, and import / export operations.

Data model

The Axional ERP/Finance data model allows you to turn accounting activities into a real data management and analysis tool.

The multilevel structure behind accounting data helps set a wide range of criteria in order to set both cost accounting and analytical accounting models and associate them with the general ledger account, extending and complementing it. These models adapt easily to complex organizational structures throughout their evolution.

Cost accounting inherits the data model defined for the general ledger account and shared by the entirety of Axional ERP/Finance, enhancing its powerful capabilities with two additional entities. These lead to the ability to reallocate costs or revenues. Furthermore, in accordance with the applied allocation program, the set of cost centers and operating accounts is virtually unlimited.

Automated cost allocation

Axional ERP/Finance – Cost Accounting covers manual allocations, automatic programs, and hybrid solutions. The automatic allocations are generated through predefined cost allocation schemes. Such schemes allocate costs connected to accounting entries according to specific percentage rates, according to the set of entities to which each program is assigned. The destination of these allocations broadens the source entities according to the Axional ERP/Finance – Cost Accounting model, but simultaneously maintains or modifies the values of the original entities if the process sets the criteria as such.

Cost distribution and indirect cost allocation

Axional ERP/Finance – Cost Accounting allows users to reallocate balance amounts from source cost centers or accounting dimensions to other destination centers. The underlying cost distribution programs are fully configurable and adapt according to:

  • Distribution through percentage rates
  • Distribution through statistical info units
  • Distribution based on the balances of accounts or groups of accounts

 

This powerful feature supports the allocation of indirect costs by distributing amounts from shared or auxiliary cost centers into manufacturing or operating cost centers. Moreover, cost distribution activity can be identified and isolated at any time, ensuring that rollback or regeneration of distribution processes will always be feasible.

Automation features

Axional ERP/Finance – Cost Accounting manages powerful tools to automate analytical allocation. That means saving time on repetitive tasks such as:

  • Allocation, grouping, and distribution.
  • Monitoring of investment projects. Cost and revenue control.
  • Calculation of revenue and invoiced amounts by contract, project and task.
  • Pre-defined methods and algorithms to calculate costs linked to a project.
Grouping of balance amounts

Axional ERP/Finance – Cost Accounting, like the General Ledger module, has the ability to automatically group balance amounts. This structure is intended to quickly and simply provide useful statements from the cost accounting area.

Notable benefits
  • Hierarchical architecture built to manage cost centers, with a multilevel and multi-method analytical approach for every type of grouping.
  • Effective cost control via a powerful information system and analytical report generator that allows you to easily adapt the working environment to your needs.
  • Agile tracking of operations. Simple drill-down and drill-across through various management documents (orders, delivery notes, invoices), accounting records, and analytical allocation sources allows links to be created between documents and their sources, thanks to the data model structure.

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