Activity Based Costing



SYSPRO Activity Based Costing (ABC) allows for the accumulation and recovery of costs associated with the purchasing, manufacturing and selling of items, thereby improving accuracy in calculating product profitability. Overhead costs are accumulated against items by attaching elements of cost to the transition points of purchasing, manufacturing or selling.

The Benefits of Activity Based Costing

  • User-defined elements of costs attached to transition points in the purchase, production and sale of products
  • Pre-production costs are apportioned as stock is received from Purchasing
  • Manufacturing costs are apportioned as stock is received from Work in Progress
  • Post-production costs are distributed through cost of sales as the final item is invoiced
  • Calculation of single batch or item-based activities
  • Phased implementation supported

Activity Based Costing Features

  • Define the cost elements to be allocated to stock
  • Run Activity Based Costing parallel to traditional costing during implementation
  • Assign the drive quantities for each element
  • Estimate appropriate recovery rates using system-generated estimates
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