Overhead Cost Controlling: Process Cost
In contrast to the Cost Center Accounting is the process cost transaction-one, primarily at the operational structure of a company oriented view of the overhead ground. Master data and controlling object of process cost are the business process. He represents a cross-functional process) (eg, order processing, where usually several cost involved.
Cost and process cost are in overhead cost controlling not in a substitutive, but in a complementary relationship. In Cost Center Accounting is the cause-clearing the overhead of the direct service areas (production) with the help of Ratios (man and machine hours) - evaluated with the following the procedures of (marginal) costing determined rates for the benefits - in the foreground. In manufacturing, the production process is and hence the output device by the use of a work plan (see the section "Product Cost Controlling: Product Cost Planning") accurately described and provides a cause-clearing the overhead of the cost of the products.
Another situation is reflected in the indirect service areas (procurement, Administration, distribution) of the company. For the sole use of the Cost center account the overheads of the indirect service areas to cost only with the help of the overhead account are offset. These overhead costs (such as selling expenses) will be based on value-based reference bases (eg manufacturing) to cost offset. The amount of a cost / product invoiced Selling expenses will be determined by the level of production costs. The actual utilization of services within the distribution area (eg Number of deals Number of processed customer orders) on the other hand in the cost allocation is not included.
The process cost contributes to a cause-based billing overhead costs of indirect service areas when, as the transfer corresponding to the usage of services of these divisions made to the cost. Process cost is this in R / 3, a connecting link between the cost center accounting and Cost of Product Cost Controlling component.
A direct assignment of overhead costs from financial accounting to business process cost is not provided. All Overheads are also first use of process cost collected on the cost centers. Of the cost of the overheads can either through settlement or by the performance assessment / distribution (see "Controlling overhead costs: allocation methods") to the business be offset. For the cost allocation to be the cost of indirect service areas (eg purchasing, sales) analogous to the cost in the manufacturing sector in the system of (marginal) costing Activity types conducted. An example of an activity is the Number of test hours in a cost center, "Incoming Inspection." The Transfer the investigator hours on a business' goods receiving / -- storage 'can e.g. based on the delivery of goods through a period the (indirect) cost allocation made. Because in a business usually more cost involved, is through the process cost the functional breakdown of the cost center oriented overhead view expanded by a process-oriented perspective.
The clearing of the overheads of the business acquired to the cost can be made using a process schema. That Process scheme describes the quantitative mobilization of business by calculating properties / cost. The process amounts to assessed with the rate of the business. The process scheme can while simplistically interpreted as a work plan for the indirect service areas will: Just as the work on the quantitative use manufacturing services (man and machine hours) of direct service areas describes describes the process scheme, the quantitative Use of the indirect benefits through a range of power Costing Object / a cost.
With the process cost can thus for example material costs the basis of the necessary procurement processes (eg, material ordering, product storage) materials for use in the calculation / Cost be offset. Thus the amount would be on a property costing / one Material overhead cost allocated depends on whether the Use materials, e.g. in the context of collective or individual purchase orders, procured were. The described transfer of the material overhead is cause-as in the overhead calculation in which The material overhead allocated solely on the price of input materials (= Depend on) materials costs.
The described functionalities of the process cost related on the operational process cost in the process of settlement fully in the payroll operational flow are integrated. In addition, exists in R / 3, the ability to process cost as a parallel calculation introduced for simulation purposes. The operational value of the river remains unaffected. |
