ACC 342 Lecture Notes - Lecture 12: Cost Accounting, Time Management
How does ERP support financial and cost accounting
Financial Accounting:
Manages AR AP
Posting and Reporting
Cost Accounting:
Tracks the costs associated with producing products
Asset Management:
Manage fixed-asset purchases (plant, machinery, etc.) and associated depreciation
Cost Center Standard Hierarchy
Organizes cost centers centers and provides the ability to organize reports at different levels in the
organization
internal vs external accounting data
Usually the same.
Can be captured while recording business transactions.
Presented in different ways for different users.
Cost Center
used to track where cost occur in the organization
Cost Allocation
costs like rents, computer expenses, utilities, etc. have to be allocated to cost centers to provide
accurate cost reporting.
Cost can be allocated using a statistical key figure, like square footage, head count, CPU hours, etc.
Costs can also be distributed using a fixed percentages.
Integration benefits of ERP for Financial Management
Input to G/L occurs simultaneously with all business transactions.
Actual transactions can be checked at any time, in real-time, by displaying original document, line items,
and transaction figures at various levels.
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Document Summary
How does erp support financial and cost accounting. Manage fixed-asset purchases (plant, machinery, etc. ) and associated depreciation. Organizes cost centers centers and provides the ability to organize reports at different levels in the organization internal vs external accounting data. Cost center used to track where cost occur in the organization. Cost allocation costs like rents, computer expenses, utilities, etc. have to be allocated to cost centers to provide accurate cost reporting. Cost can be allocated using a statistical key figure, like square footage, head count, cpu hours, etc. Costs can also be distributed using a fixed percentages. Input to g/l occurs simultaneously with all business transactions. Actual transactions can be checked at any time, in real-time, by displaying original document, line items, and transaction figures at various levels. Compliance with sox. archiving data user authorizations tolerance groups. Develop: training and skill enhancement; employee development and assessment. Retain: time tracking and payroll; tracking projects and schedules.
