We can use Cost Center
Accounting for controlling purposes within our organization. The costs incurred
by our organization should be transparent. This enables you to check the
profitability of individual Department or functional areas and provide correct decision-making
data for management people in our organization. This requires that all costs be
assigned according to their source. However, source-related assignment is
especially difficult for overhead costs. Cost Center Accounting lets we analyze
the overhead costs according to where they were incurred within the
organization.
Features:
POSTING ACTUAL COSTS
Primary costs can be transferred to Cost Accounting from other components, for example, Materials Management (MM), Asset Accounting (AA), and Payroll Accounting (PY).
Additional costs and outlay costs are recorded using the accrual method.
ALLOCATING ACTUAL COSTS
we can use various methods to further allocate the actual costs we have recorded, according to their source. The R/3 System distinguishes between transaction-based allocations, which occur within one period, and period-based allocations, which occur at period end.
PLANNING ACTIVITIES AND COSTS
We can use planning to define organizational targets and carry out regular cost-effectiveness checks. Variances can be calculated by comparing the actual costs and activities with the plan values. These variances serve as a control signal, which helps we to correct business processes, when required.
We can plan costs and activities to determine allocation (activity) prices.
ALLOCATING PLAN COSTS
All actual allocations that occur for cost centers can also be planned (for example, distribution, assessment, and indirect activity allocation).
Entering plan and actual statistical key figures
Statistical key figures are used as the basis for the indirect allocation methods, as well as for evaluations in the information system (for example, employees, telephones).
Activity Accounting
Activity Accounting uses the activity produced by a cost center as the tracing factor for the costs. We can use activities to measure the operating rate or the rate of capacity utilization for a cost center. The target costs of the cost center refer to the activity output.
Depending on the source of the costs, the activities of a cost center are divided into various activity types (for example, for the Work center cost center: Repair hours or Assembly hours.
Information system
The information system provides tools with which you can analyze the cost flows that have occurred in our organization. We can carry out standard recurring evaluations; and create special reports for unique tasks or situations.
Features:
POSTING ACTUAL COSTS
Primary costs can be transferred to Cost Accounting from other components, for example, Materials Management (MM), Asset Accounting (AA), and Payroll Accounting (PY).
Additional costs and outlay costs are recorded using the accrual method.
ALLOCATING ACTUAL COSTS
we can use various methods to further allocate the actual costs we have recorded, according to their source. The R/3 System distinguishes between transaction-based allocations, which occur within one period, and period-based allocations, which occur at period end.
PLANNING ACTIVITIES AND COSTS
We can use planning to define organizational targets and carry out regular cost-effectiveness checks. Variances can be calculated by comparing the actual costs and activities with the plan values. These variances serve as a control signal, which helps we to correct business processes, when required.
We can plan costs and activities to determine allocation (activity) prices.
ALLOCATING PLAN COSTS
All actual allocations that occur for cost centers can also be planned (for example, distribution, assessment, and indirect activity allocation).
Entering plan and actual statistical key figures
Statistical key figures are used as the basis for the indirect allocation methods, as well as for evaluations in the information system (for example, employees, telephones).
Activity Accounting
Activity Accounting uses the activity produced by a cost center as the tracing factor for the costs. We can use activities to measure the operating rate or the rate of capacity utilization for a cost center. The target costs of the cost center refer to the activity output.
Depending on the source of the costs, the activities of a cost center are divided into various activity types (for example, for the Work center cost center: Repair hours or Assembly hours.
Information system
The information system provides tools with which you can analyze the cost flows that have occurred in our organization. We can carry out standard recurring evaluations; and create special reports for unique tasks or situations.
No comments:
Post a Comment