Cost Center Analysis

Before you start

• Budgets are defined in ‘Budget. Open’ (BUS100)
• Cost centers are defined in ‘Accounting Identity. Open’ (CRS630)
• The accounting dimension reserved for cost centers is defined in the ‘Accounting dimension for cost center’ field in ‘Settings - Cost Accounting’ (CAS900/G)
• The ‘Search path – variable percentage’ field in (CAS900/G) indicates from where the variable portion of a fixed/variable is retrieved.
• Resource drivers are defined in ‘Resource Driver. Open’ (CAS040)
• At least one cost center model is defined in ‘Cost Center Model. Open’ (CAS050).

Follow these steps

1. Division into Fixed/Variable Costs

   The division into fixed and variable costs is determined by resource drivers. In ‘Resource Driver. Enter Connection’ (CAS041/E) a variable percentage can be indicated for every cost center, account, and resource driver. The remainder is calculated as fixed.

2. Selection of Costs

   The selection of costs is determined by a cost center model. This is an umbrella term for a group of pre-defined lines that decide which type of costs are to be included and monitored.

3. Cost Analysis

   ‘Cost Center Analysis. Display’ (CAS200) provides an outline of the costs for each cost center for a cost center model. ‘Cost Center Analysis. Display per Account’ (CAS201) displays planned (budgeted) as well as actual market value for total, quantity, and index for the period.

4. Registration of Simulated Values

   How an increased value for each respective resource driver (Hours for example) affects a cost center becomes apparent when simulating changes in cost variables.

   Simulated values are entered per cost center in (CAS200/F), where the simulated actual value is also shown.