SAP Business One 6.5

Financials -- Cost Accounting

Enables users to define profit centers so that they can effectively monitor and regulate the costs of business processes. The profit center reports give important information about the costs and revenues that have arisen, sorted by area and department.

Companies first define the various cost centers or departments in the company as profit centers. They then assign revenue and expense accounts to the profit centers so that any data relevant to a profit center can be updated automatically for all transactions entered in the system. Costs are allocated to the profit centers using information defined in a distribution rule. Any costs incurred will be allocated to the profit centers on the basis of a specific key. Users can simply change the distribution rule as required. Companies can use the Profit Center Report to generate a profit and loss statement for any profit center and period.

In addition to conventional financial accounting (where the values of all business transactions are recorded), many companies also perform cost accounting. The aim of cost accounting is to determine how profitable a company's business activities are.

Enables companies to analyze the expenses and revenue of a specific business area in detail. Some expenses and revenues, called direct expenses and direct revenues, can be assigned to one specific business area.Some expenses – such as administration costs, advertising costs, and financing costs – and some revenues cannot be assigned to one specific business activity. . In Cost Accounting, these indirect costs and indirect revenues are allocated to business activities by means of distribution keys.

In addition to the data entered for profit centers and distribution rules in the standard fields of SAP Business One, companies can also define as many user fields as necessary for these objects. This is a convenient way of storing a large quantity of additional data required in your company. If users have defined user fields for profit centers and distribution rules, these appear in the menus for processing these objects in the menu bar.

The following business goals and objectives can be achieved through the implementation of these processes:

• Increasing Transparency & Accountability
• Increase data transparency
• Provide decision support