Process Cost Optimisation / Activity Based Costing

With the activity based costing of Proway Business World (PBW), the costs of your business units can be planned, monitored and controlled in an optimal way.

The tasks handled in your company’s cost centres are divided into the relevant activities related to the process along the value chain. The costs are assigned to these activities depending on so called cost drivers and the process cost rates are determined on that basis. This allows the calculation of process related overhead costs for the products and services performed. In this way, possible cost-savings can be identified and related process optimisations can be realised.

The maintenance of internal and external prices of the activities allows you to check the profitability of the processes and to take cost-oriented improvement measures.
In addition, the result of PBW’s activity-based costing can be used to create an invoice. Further billing of logistics services to other departments in your company or to external clients is easily possible. The journalisation in PBW allows each invoice to be backed up with a detailed list of activities.

The generic structure of activity based costing also allows the functionalities described above to be applied to the processes in other company departments. All that is required is to import a journal or log file of the executed activities of an external system into PBW. Similar to the logistics processes, PBW determines the associated process costs which enables company-wide optimisation and savings potential to be identified.

The features for activity-based costing can be found under Functions.

  • Definition of service recipients, cost centres, account assignments and service types with their cost rates
  • Creating activity groups to show the costs for sub-processes and main processes
  • Analysis and monitoring of the processes up to the individual activity
  • Reconciliation between internal and external costs
  • Creating invoices for the service recipients for any definable period of time
  • Using activity based costing with any journal file from external systems