Cost Centre Accounting
Cost Centre Accounting provides the basic features of operational cost accounting. One of the basic features is the consistent division into fixed and variable cost components.
In addition, you can specify fixed amounts or percentage values in the various cost types. Cost Centre Accounting offers the basic features such as BAB, allocations and cost rate setting. Cost Centre Accounting is also the basis for determining surcharge rates for profit performance accumulation.
Cost type plan
Irrespective of whether you want to use an individual cost type plan or a cost type plan which corresponds to the chart of accounts, you can freely configure it according to your specific needs. Your G/L accounts are linked with the cost types provided in the Cost Centre Accounting area.
Cost account schedule
You can perform your own evaluations analogously to the account schedule of your General Ledger. Information from performance and cost unit data can also be retrieved here. A connection with analysis views gives you the opportunity to present multidimensional structures, e.g. cost centre groups or profit centres.
By using dimensions, you can precisely group posting information for detailed cost analyses. Dimensions are available across all modules. Postings with the Cost Centre dimension are considered with further dimensions in CKL Cost Centre Accounting. You can use postings/allocations with additional dimension data in your Cost Accounting.
The Cost Accounting area is primarily supplied with data from the General Ledger module as well as with quantity data from the Manufacturing module, if required. The transfer of data can be done automatically or manually for each posting.
Reference value administration
Reference values do not only represent performance units in Dynamics NAV, they also include additional functionalities. Charge rates are coupled with reference values as well as with production units, if required. For example, a reference value of the Hour type can be defined with various hourly rates per cost centre and with units of production resources. You can define reference values in three steps . Firstly, the cost rates are specified per reference value (e.g. kWh, hour). In the second step, the cost rates of a reference value can be assigned to any number of cost centres. In the final step, you can define the period of validity for the cost rates. For each period, you can consider different charge rates.
Costs posted on the indirect/service cost centres can be allocated to the main cost centres by using various allocation methods. The following allocation methods are available:
- step ladder method (Performance, relation and reference to another cost type) - quantity x cost (by using any reference value with Charge rate)
You can also perform allocations proportionately. If you want to offset the cost centres until all values have been allocated, you can use the iterative method. If you want to distribute allocations based on the relation of budget figures, you can reference to the suitable budget and distribute the actual data.
You can set up any number of budgets, analogously to the General Ledger module. You can use these budgets to perform target-actual comparisons or consider them in your Financial Accounting. Budget amounts are divided into fixed and variable parts. The budget can be structured by using actual data including a factor.
In order to further process the budget data outside the system, users have the option to export them to Excel. You can process the budget by considering different dimensions in order to get partial or subordinate budgets. You can additionally use allocations for structuring the budget.
Overview of Cost Centre Accounting functionalities
- Creation of cost type plan based on G/L accounts or individual setup
- Division into fixed and variable amount parts
- Specification of fixed amounts in the cost type
- Administration of a diverse number of dimensions/reporting indicator with each posting
- Option to automatically use cost and performance posting from other modules
- Reference values to administrate performance postings
- Transfer of quantities of the Manufacturing/Resources/Jobs module by using reference values
- Specification of charge rates for reference values
- Allocations by using:
- the step ladder method by distributing by ratio, performance or reference cost type
- quantity x cost rate with charge rate
- the iterative method
- the relation of budget values
- recurring calculatory postings
- budgets of Cost Centre Accounting with the consideration of dimensions
- quantity budgets
- budget structured by separating fixed and variable amounts
- budget linked with Financial Accounting
- budget structured by using plan assessment
- export/import function to/from Excel
- administration of analysis views for detailed multidimensional analyses and target-actual comparisons
- linking analysis views with account schedules
- user-defined analysis options of the account schedules
- cost type sheets
- BAB according to cost centres/periods
- target-actual comparisons
Analysis views in Cost and Performance Accounting
Analysis views can be created based on the dimensions posted in CKL Cost Accounting. The basis for these analyses are postings of the Cost Centre and Cost Unit Accounting as well as budget data.
In addition, the analysis data can be linked with account schedules in order to obtain a different presentation form. All relevant data can be exported for further processing from the analysis view to a pivot table in Excel via a direct export interface. This way, the different areas of the company can benefit from the performance of costs.