Unit costing
You can use unit costing to estimate the expected cost incurred for current and future periods using forecasts of demand based on counts of treatments and the duration of treatments that have been or will be delivered.
In order to generate unit costs, driver events data must first be imported with the finance dimension combinations with cost object that matches the allocation run.
After allocations have been calculated, unit costs are calculated for the period specified in the allocation run. Unit cost for each cost object is calculated by the specified drivers For example, if the selected drivers are count and minute duration, an allocation run allocates $10,000 to a cost object. The driver events data specifies that the cost object had a unit count of 10 and a total minute duration of 1,000 during the period. Generating unit costs for the period calculates that the unit cost per count is $1,000 and the unit cost per minute duration is $10.
Unit costs are calculated for allocation runs that post to the utilization ledger and to the capacity ledger. For example, if an allocation run is executed for actual volume calculations, the balances are allocated accordingly to the utilization ledger and the total cost for a cost object is used in unit cost calculations. If an allocation run is executed for capacity calculations, the balances are allocated accordingly to the capacity ledger and the total cost for a cost object is used in unit cost calculations.