Following are the features provided by Microsoft Dynamics Business Central 365 for cost accounting:
Chart of Cost Types
The chart of cost types is created similar to the chart of accounts in the general ledger. The income statement accounts from the general ledger can be transferred or a new chart of cost types can be created. The chart defines what are the cost types involved in the organization accounting.
Chart of Cost Centers
Cost centers can be defined as the business units or departments that generates income or incurs costs. These cost accounting cost centers are created in addition to the general ledger dimensions and they help in analyzing the source of the cost in more detail.
Chart of Cost Objects
The cost objects are any items that bears the cost for the company. These can be products or product groups or even services provided by the company. The cost objects are created to link them to the projects or any dimensions and get a clearer picture and analytical reports on the cost incurred for the specific product.
Business central offers a feature of defining the cost allocation rules which divides the cost between the cost types, cost centers and cost objects.
The allocation is defined based on the allocation source and the targets. The allocation method can be based on the percentages or definite values defined
The cost budgets are created in business central and can also be copied from the general ledger budget. The budget cost can also be transferred to the actual cost towards the end of the period.
Cost journals can be maintained in business central independent of the general journals. The costs posted in the general journal can be transferred into the cost journals on a predefined period i.e. monthly, weekly or daily.
The cost journals can also have entries that are not generated in the general ledger. The entries can be setup to be posted on recurring basis as well.