Activity Base Costing

Objective - To associate elements of overhead cost to those products which cause them by applying the cost at the points of transition in the procurement, manufacturing and sales cycles.

• The Value of SYSPRO Activity Based Costing
  • Adopts a migration approach, recovering additional overheads according to an implementation plan
  • Attaches user-defined elements of costs to transition points in the purchase, production and sale of products
  • Distributes pre-production costs as stock is received from purchasing
  • Apportions manufacturing costs as stock is received from Work in Progress
  • Distributes post-production costs through cost of sales as the final item is invoiced
  • Activity calculation can be single batch or item based
  • Provides preview of reports to the screen and e-mail capabilities
• Matching SYSPRO to Your Business
  • Defines the cost elements required that are to be allocated to stock
  • Defines the drive quantities for each element
  • Runs ABC costing parallel to traditional costing during implementation
  • Estimates appropriate recovering rates using system generated estimates
• Audit Trails and Reporting
  • The ABC costing variance account is designed to accumulate rounding errors that can arise during processing of a receipt into stock
  • The Recoveries Estimate Report program produces a report of the expected overhead recoveries relative to the quantity of the stock item processed
  • The ABC Analysis Report program prints a report listing of all the recoveries made against various elements according to a specific ledger period or all ledger periods
• Integration
  • Integrates with the Bill of Materials, Work in Progress, Sales Orders & Invoicing, Purchase Orders, and Inventory Control modules
  • Provides the ability to run in parallel mode
  • E-mail reports with the Office Automation module