Cost Accounting Module |
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A systematical path to an efficient cost accounting
Enhanced transparency in cost accounting
Accounting department is responsible for keeping records
of financial inflows and outflows. One of core activities in
financial accounting is calculation of liquidity. Meanwhile,
cost accounting deals with profit and loss calculations. In
order to assist companies with the fulfillment of their cost
accounting activities, the CANIAS ERP Cost Accounting
Module offers integrated cost centers, and cost unit and
cost type accounting functions. These three are the pillars
of a modern cost accounting system.
The primary expectations of an organization from its
accounting activities are timely and accurate
determination of costs and their allocation to respective
cost centers. Since costs are incurred by all departments
of the organization, the CANIAS ERP Cost Accounting
module is integrated in and utilized throughout the entire
enterprise.
Cost type accounting for identifying costs
Cost type accounting assists with identification of costs
incurred, and allocation of costs to corresponding cost
types. Cost type accounting determines the cost structure
of primary and secondary costs of an enterprise, and
builds basis for further calculations. Costs are clearly
separated by the ERP system and are also carried over
to the table of accounts (primary costs). The separation
is either implemented according to cost scope (full
costing; e.g. separation into direct costs, overhead costs,
special direct costs, production costs, and sales cost), or according to dependent activity (contribution
accounting, separation of variable and fix costs). Further
separation of the costs (primary, secondary, and
imputed costs) is also possible.
Priorities and distribution ratios can be determined to
accurately establish expense types and costs, based on
detailed distribution tables. Expense accounts determine
the direct and indirect costs of an organization and
constitute an important aspect of the financial planning
of an organization.
Cost centers accounting for accurate cost allocation
The CANIAS ERP Cost accounting module establishes
associations between expense types and cost centers.
Company code, works, cost center number and validity
periods are used for this purpose. Activity types within an organization are associated with cost centers. In this
manner, overhead costs that have been classified
according to expense types can be loaded to cost centers.
Afterwards, the system performs an internal cost
allocation between cost centers to distribute overhead
costs correctly. For both planned and realized costs, it is
possible to perform cost distribution using primary and
secondary cost centers. This distribution may also be
performed in an identical manner using distinct
distribution keys.
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