Analyze Profitability with Cost Accounting in Microsoft Business Central
Cost accounting provides the necessary cost details that you need to oversee your operations and make informed decisions. It usually falls on the accounting and finance teams to produce this information. Microsoft Dynamics Business Central can help you allocate actual or budgeted costs of your operations to your cost centers and cost elements (materials, labor, overhead) in order to analyze profitability.
Business Central Cost Accounting Overview
Microsoft Dynamics Business Central lets you define cost types, cost centers, and cost objects to analyze what the costs are, where they come from, and who should bear them.
You define a chart of cost types with a structure that resembles your general ledger chart of accounts. You can transfer the general ledger income statement accounts or create your own chart of cost types.
The system will walk you through a guided process to setup your chart of cost types including where cost centers are assigned and how costs are allocated.
Costs Budgets and Cost Reporting
There is no limit to the number of cost budgets you can create. You can even copy costs budgets from your general leader budgets or updated your general budgets from cost budgets.
Several cost reports are provided by the system that makes it easier for you to preform analysis. You can create your own reports using the account schedules and analysis by dimensions features of the system. There is a Power BI connector for those interested in creating specialized dashboards and visualizations.
Request a demo of Microsoft Business Central to learn how its cost accounting features can help you.