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
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Adopts a migration approach,
recovering additional overheads according to an implementation
plan
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Attaches user-defined elements
of costs to transition points in the purchase, production and sale
of products
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Distributes pre-production
costs as stock is received from purchasing
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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 email capabilities
Matching SYSPRO to your
business
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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
Integration
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Integrates with the Bill of
Materials, Work in Progress, Sales Orders & Invoicing, Purchase
Orders and Inventory Control modules
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Provides the ability to run in
parallel mode
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Email reports with the Office
Automation module
Audit Trails and
Reporting
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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
