How does your organization measure profitability? Do you measure profitability in your P&L by revenue center, division, or total corporate performance? How could you make better managerial decisions based on other profitability dimensions?
The JD Edwards EnterpriseOne Advanced Cost Accounting system provides a foundation for managerial accounting and activity-based costing, ensuring you are operating at peak performance by exercising fiscal accountability and making better-informed decisions. Corning Data clients that implemented Advanced Cost Accounting gained the ability to measure profitability by Customer, Customer Group, Item, Item group, and several other dimensions. They use this information to determine their most and least profitable clients, and most/least profitable product lines so they can make business decisions that drive profitability.
Traditional accounting and activity-based costing differ in that activity-based costing is not required to follow Generally Accepted Accounting Principles (GAAP)–debits do not have to equal credits. You can even focus on a segment of the business instead of the entire business.
Typically, you use activity-based costing when a more accurate allocation of indirect expense-to-cost object is required. Activity-based costing using JD Edwards Advanced Cost Accounting enables you to identify and capture direct or indirect costs for specific products or customers by using cause-and-effect relationships by assigning activities to specific cost objects.
With JD Edwards EnterpriseOne Advanced Cost Accounting you can:
- Capture financial information within the cost analyzer table for further analysis
- Track and assign transactions using cost objects
- Capture quantity information
- Reassign costs based on cost drivers
Contact us at 800-455-5996 or info@corningdata.com to find out how you can use JD Edwards Advanced Cost Accounting to let you measure so you can manage.
