There were some questions regarding how to work with cost accounting in SAP Business One (B1), and that motivated me to write this blog. First of all there is some information in https://help.sap.com/docs/SAP_BUSINESS_ONE/68a2e87fb29941b5bf959a184d9c6727/179c4757670a4c6586f3adf4....
Secondly, let’s try to define what is required for the cost accounting? You can find many different definitions for that on the internet. I choose the following one:
Cost accounting involves assigning costs to cost objects that can include a company's products, services, and any business activities. Cost accounting is helpful because it can identify where a company is spending its money, how much it earns, and where money is being lost.
So, as you can see, this is not a legal requirement to have the cost accounting, but it’s mainly used for the managerial accounting.
Once we are clear with the definition, let’s take a closer look at how you can define and work with that in B1. Under the Cost objects we use Cost Centre and under the Cost accounting we use Cost Accounting Reports.
This blog is related to the second part – cost accounting reports and I will dedicate it to the Cost Accounting Summary Report:
It can be that you may not see the Dimension dropdown list in your B1. Don’t worry, it means that you did not enable the dimensions under your Cost Accounting setup under the General Settings in Administration -> System Initialization:
You can see in this screen that once you have decided to use Multidimensions you cannot go back.
But let us go back to the report.
You can run the report with your own Cost Centres Hierarchy or using Cost Centres. I have defined the Cost Centres Hierarchy as following:
And now have the following result:
In case you do not have a complex cost accounting structure you can use Cost Centre button. In the same data base with the same selection criteria, I have the following result:
As you can see, the result is the same. However, the presentation is different. You can also print out the result using the system print layout or your own.
With the other filters like Project, GL Accounts, Add Journal Vouchers, Exclude Closing Balances JEs you can play with the results to understand your company situation and plan your activities to have the financial result better.
Display in Report part is common for both report presentations and is used in the other SAP Business One financial and accounting reports. However, if you run SAP Business One in the location with different currency displaying data in System currency can help you compare the results of different business locations.
This is an overview of the possibilities to use this functionality in SAP Business One. It should help to adopt your B1 to your business model to be effective.
In case you have used the functionality, I would like to ask you to share your feedback or thoughts in a comment or ask questions in the Q&A tag area.
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