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
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