Cost Center Accounting (COS) with canias ERP
The caniasERP Costing (COS) module is responsible for recording commercial transactions between the companies and the outer world and is subject to legal arrangements (e.g. HGB or EStG). Cost calculation is generally used for in-house reporting. The primary purpose is to check commercial transactions that occur within the company.
In the caniasERP system, the expense accounts in Financial Accounting also function as cost types. Here, it is possible that they are defined as fixed or variable costs and also are summarized by forming cost type groups. It is also possible that an account or an account type is defined subject to a cost center. The purpose of this is to guarantee that all relevant financial accounting records are transferred to cost centers.
The caniasERP Costing module enables defining various cost elements (e.g. production orders or projects). Cost elements that occur throughout the period can be checked with a concurrent calculation. Accordingly, costs that arise through a final cost calculation can be compared with original planned costs. The caniasERP Financial Accounting module offers access to planned costs same as those used in the area of cost accounting or form a separate budget that are taken into account only in the area of financial accounting.
The central master data in the caniasERPCosting module can be defined as desired without being limited to a certain number of cost centers. The defined cost centers are related to cost types (cost accounts) in the caniasERP Financial Accounting module and to cost carriers (production confirmations) in the caniasERP Production Planning and Scheduling and caniasERP Project Management modules.
This relation enables the caniasERP Costing module to run in integration with other modules. In addition, it is possible to form cost center hierarchy by defining a superior cost center for each cost center.
For the purposes of cost entry, financial accounting records, production confirmations and if necessary stock management product movements can be grouped as primary costs. By defining a distribution key, costs in auxiliary cost centers can be distributed to main cost centers. Production confirmations, occurring costs or specified fixed rates (e.g. square meter, number of employees, telephone units used, etc.) can be used each as a distribution criterion. Using the defined distribution key, cost transfers may be carried out between cost centers. In addition, cost distributions occurring as a result of different distribution keys can be compared.
Finally, using the cost distribution data prepared, new activity unit costs that will be used as a base for future product cost calculations (e.g. workmanship duration or power consumption) can be determined. In addition, when calculating activity unit costs, instead of realized production confirmations. Ideal working periods that have been defined at cost centers can be used. When the working period is not filled, the expense of the idle capacity can be accounted for via the caniasERPCosting module. Furthermore, for the data created, there are various reporting options such as cost distribution chart, annual comparison or plan vs. actual.
Due to high integration level of the caniasERP system, the entry of data related to Costing is carried out in line with the document entries in the caniasERP Financial Accounting, caniasERP Asset Accounting, caniasERP Sales, caniasERP Inventory, caniasERP Production Planning and Scheduling modules. Therefore, cost calculations can be performed without the need for double entries and data transfer.