Post by account_disabled on Mar 5, 2024 22:24:17 GMT -5
Why today, it is of key importance to have management tools based on accurate information, which help to base strategic and operational decisions and thus have good financial management. What is the cost system? Most companies have, among their multiple management tools, some “cost system.” however, there are many who find it difficult to define exactly what it is for, monitor its implementation and interpret the information they offer. Whatever the cost system implemented in a company, experience shows that they all share the same complexity: the need to customize it to the requirements, sector and characteristic processes of each company . It is precisely in that phase of personalized design and parameterization when the most errors are made. What are the most common errors in cost systems? How can we avoid them? Let's look at some examples of what we have found in some of our clients.
Confuse what was invoiced with what was sold on one occasion we found a very particular cost system . Basically, it was assumed that what was invoiced was equal to what was sold and it was assumed that the sales figure analyzed by the cost system for a time interval should be identical to the invoiced amount that the income Bank user number data Statement reflected for the same period. In this case, the difference between both concepts was not clear; they are different amounts and should not try to be equalized because they are not the same. Basically, it was not considered that billing includes discounts on the invoice, rebates and other concepts that are applied to the amount of the sale and that are not usually contemplated in an analytical sc, where sales are purely reflected. In this client, constant situations of confusion were experienced, inducing directors and managers to distrust the cost system, dedicating a lot of time and resources, in short costs.
To trying to detect the causes of these differences, looking for possible failures in the analytical system until was detected and corrected. 2. Not having 100% manufacturing traceability, designing the sc only for some clients in more than one project we have analyzed different cost systems that did not consider 100% of sales. In these cases, the sc was designed applying reasoning similar to pareto's theorem : "To control my business it is enough to control 20% of my clients, who represent 80% of my sales...", and thus only the products were included. Or services corresponding to these clients. In order to obtain the global result from the cost system, but including all clients, the relationship between that 80% of sales and the total billing figure of the income statement was calculated. With this factor, which was normally between 1.05 and 1.1, the costs and results were projected.