FI Cost Accounting
(Please click on the hexagons for more information)
Process Input
- Cost of Goods sold (COGS)
- Provider costs
- Project expenses
- Distributed "Overhead Costs"
Process Output
- Project ROI
- Project Net Present Value
- Gross profit earned on individual projects
Terminology
- Cost Object
A cost object is any segment or an element for which the cost information is desired. Typically there are three types of cost objects:
- Output -> A service provided / a project executed / a product created
- Operational -> A company, department, process
- Business Relationship -> Costs for a supplier or a customer
- Costs of Goods sold (COGS)
Costs of goods sold in the service industry are principally payroll expenses
- Project ROI
- Net Present Value
- Cost of Sales
- Overhead costs
Costs that occur to maintain business operations, commonly distributed across cost units
- Direct/indirect costs
Objectives:
Key Dimensions Timesheet Costs covered by ]po[
Time spent on a particular Customer (global effort)
Time spent on internal activities
- In its basic form, projects can be distinguished between
- internal projects (Customer is the 'Internal company') or
- external projects (Customer is a Company of type 'Client')
- Some projects might be executed internally, whereby a customer is a internal department and the project is executed by a second internal department.
- In all cases existing reports can be adjusted/extended easily to distinguish btw. internal/external effort.
Time spent on a particular Project
Time spent on a particular Product
- Case 1: Each project or each group of projects (Program) is assigned to exactly one product
Create Dynamic Field for object type "Project" and adjust / extend reports accordingly
- Case 2: Within one project several products will be delivered
- Case 2a: Assignation product / sub-project is possible
-> see Case 1
- Case 2b: Assignation to product / sub-project not possible
-> Add Dynfields to Material and assign to each task the according material
Time spent on a particular task outside of a formal project
- Option 2: Use the Helpdesk Module
Time spent by a group of employees (team) on a particular product or customer.
- Case 1: Group of employees is a department
Create departments in Cost Center Module and set relationship employee/department in HR Module - Portlet "Employee Information"
- Case 2: Create a new ]po[ Group and adjust reports accordingly
Setting up Cost Accounting in ]po[
- Step 1: Define relevant "Cost Objects"
- Step 2: Define frequency of measuring the costs
- Step 3: Define data input
- Step 4: Perform GAP Analysis to evaluate input data not yet managed with ]po[
- Step 5: Create Forms, Portlets and Reports
- Step 6: Adjust Business processes / inform employees
Example:
Determine HR Profitability in projects:
Step 1 - Define relevant "Cost Objects":
- Customer / Project Type
- Project
Step 2 - Define frequency of measuring the costs:
Step 3: Define data input
- Hourly internal cost of employee
- Sales price Consulting Hour
Step 4: Perform GAP Analysis to evaluate input data not yet managed with ]po[
- Missing portlets to conveniently manage hourly rates
Step 5 - Create Forms, Portlets and Reports in ]po[
- Create Portlet to manage default hourly rates for employees based on cost objects.
Portlet on user page to set default hourly rate:
Portlet on project page to overwrite default hourly rate:
- Create report