Cost Center Accounting

This module allows the definition of a wide range of cost holders, calculates the cost holders that occur during the period. Thus, the actual costs and planned costs can be compared. Cost transfers can be made between cost centers by using distribution keys defined in the module. Users can determine activity unit costs for standard product cost calculations for the relevant month and for the coming months based on the expense distribution data. It is also possible to make a variety of reporting through the module, such as the cost distribution table, annual comparison or plan-actual comparison.

Cost types

Within the overall system, the expense accounts in the Financial Accounting module also serve as cost types making it possible to define these as fixed or variable costs and to summarize and form cost groups. In addition, an account or account type can be defined as subject to a cost center. The purpose of this is to ensure that all relevant Financial Accounting records are transferred to the cost centers.

Cost objects

The Cost Centers Accounting module allows for the definition of a wide range of cost objects (e.g. production orders or projects). Cost objects that form during the period can be controlled by a simultaneous calculation and the actual costs and planned costs can be compared through the final cost calculation.

Cost centers

The cost center base data that form the basis of the module can be freely defined without being limited to a certain number of cost centers. Defined cost centers are associated with cost types (Cost Accounts) in the Financial Accounting module, and cost objects (Production order operations or project steps) in Production Management and Project Management modules. Cost Centers Accounting module works in an integrated manner with other modules through these associations. It is also possible to define a cost center hierarchy by setting an upper-cost center for each cost center.

Cost distribution

General Ledger records and, if required, stock movements can be grouped as primary costs for cost entries. By identifying a distribution key, the costs in auxiliary cost centers can be distributed to the main cost centers where the production takes place. Production confirmations, resulting costs, or fixed rates (e.g. square meters, number of employees, etc.) can be used as distribution criteria. Cost transfers can be made between cost centers by using defined distribution keys, and then the cost distributions can be compared.

Using the cost allocation data, the unit costs for new activity (e.g. labor time or electricity consumption) can be determined based on future product cost calculations. In addition, when calculating the unit cost of activities, the ideal runtimes defined in the route operations can be used instead of the actual production confirmations. Costs of parts that do not operate when working capacities are not fully filled can be accounted for with the Cost Centers Accounting module.

In addition, various reporting options are available for the data generated in the module, such as the cost distribution table, annual comparison or planned-actual comparison.

Integration

With the high level of integration through the caniasERP system, the registration of data related to the Cost Centers Accounting module is performed correspondingly with the document records in Financial Accounting, Fixed Asset Management, Sales Management, Inventory Management, and Production Management modules. In this way, cost calculation can be performed without the need for duplicate records and extra data transfer.

In addition to the actual costs, the Cost Centers Accounting module can work with the planned costs as well. Planned costs can also be used in Standard Cost Management and Budget Management modules.

In addition to standard reports, it is also possible to create custom reports for customers with the Business Intelligence module.

Features overview

• Planned and actual cost comparison
• Cost center management
• Hierarchy of cost centers
• Distribution switches
• Variable and fixed cost definitions
• Activity unit cost calculation
• Inoperative part expense recognition
• Distribution according to production quantities
• Distribution by direct expense rates
• Constant coefficient distribution
• Comprehensive reports
• Raw accounting and production data control
• Planned and actual cost distribution analysis
• Cost center cost flows
• Data consistency control