April 18, 2024
Cost Accounting in Microsoft Dynamics NAV 2016 gives you an efficient way to control your company’s costs by providing visibility and insight into budgeted and actual costs of operations, departments, products and projects. Cost Accounting synchronizes cost information with the general ledger, and then allocates that information to different costs centers and cost objects.
Companies want to identify budget deviations as soon as they occur and take the appropriate action. Cost Accounting in Microsoft Dynamics NAV 2016 provides management with an accurate and immediate overview of the company’s expenditures, including from where the costs are coming, which departments, projects and items and how much they are spending. Managment can review how the company is doing and have this analysis available at any time.
The Cost Accounting functionality has different possibilities to manage costs:
Transfer Costs from General Ledger
Enter and post internal charges and allocations directly in the Cost Accounting Cost journal. Predefine recurring cost allocation rules on cost allocation cards and execute in a batch job.
Cost Budgets and Transfer Cost Budget Entries to Actual Entries
The Cost Accounting functionality retrieves data from the general ledger but works independently from the general ledger. As a result, transactions that are posted in Cost Accounting will not affect the data in the general ledger.
Cost Accounting in Microsoft Dynamics NAV 2016 is fully integrated with the rest of the standard application and includes other functionality such as a budget feature for cost accounting. This works like the budget feature for the general ledger. Also included is the ability to import and export cost accounting budget data to Microsoft Excel, create reports, aligning to multiple dimensions, and other enhancements.
- Cost Centre Accounting
- Cost Element Plan
- Accounting Parameters
- Reference Value Management
- Apportionments
- Planned Costs
- Analysis Review
- Cost Unit Accounting
- Overhead Cost Accounting
A central component of cost accounting is the chart of cost accounts. The cost accounts in cost accounting should correspond to the G/L accounts in the general ledger.
Cost Accounting in Microsoft Dynamics NAV
With Cost Accounting, finance planners or executives can track things like non-financial Unit Accounts, dynamically allocate cost across their business organization using those unit accounts or conventional financial measures. In addition, accounting for costs within Dynamics NAV assists in budgeting and reporting on that data, and managing the allocations effectively.
Next, Cost Accounting in Dynamics NAV allows you to track non-financial accounts and unit accounts such as square footage and FTEs. Then, it enables automatic cost allocations utilizing either those non-financial accounts or your conventional financial accounts from the General Ledger. In particular, one can make the most of Cost Accounting to allocate costs to groups that are NOT mentioned in your chart of accounts. These groups may include locations or product lines, geographies, or other groups.
Cost Accounting Module
The cost accounting module in the Microsoft Dynamics NAV ERP enables business leaders to create any number of cost budgets. In general, budgets have a similar function to the general ledger budget, hence, you can copy the budget to the general ledger budget or vice versa, and the convert budgeted costs into real costs without much hassle.
Why NavisionIndia?
At NavisionIndia, you can connect with our subject-matter experts to comprehend terminology in cost accounting and make the best of the module under the aegis of their expertise and experience. For the most part, our experts and consultants help you drive financial efficiency, extensive scalability, and high operational productivity.
For more details, write to us at info@navisionindia.in Or Schedule A Demo