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
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
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
