Invar Cost Accounting

Elaborate and efficient cost accounting

For whom?

Invar Cost Accounting is a helpful tool for automatic cost accounting and making monthly cross posting according to a previously designed model. It is done on the basis of  values posted in the General Ledger module and in other modules of Microsoft Dynamics AX.
The module is dedicated to companies which:
•    have complex organizational structure.
•    run a business process through project module, posting operations on the account and on many financial dimensions.
•    use multiple indexing keys, algorithms and formulas for cost accounting.
•    expect that the program will make necessary calculations and accounting in an automatic way and with possibly low user interference.

Accounting model

Periodic settlements of accounts are made on a basis of a very flexible model:
•    Settlement of cost can be divided into any number of stages due to a use of multiple cost, types of calculations or cross postings.
•    Additionally stages can be grouped into queues and collectively accounted.
•    Moreover, it is possible to assign priorities to queues, which provides a proper sequence of posting individual settlements of accounts, if they are interdependent. It significantly facilitates user’s work, whose direct participation in the process of accounting is decreased to a minimum.

Indexing keys used for accounting can be of several kinds:
•    Fixed - percentage structure does not change monthly 
•    Static - percentage structure is modified by a user (e.g. billing)
•    Dynamic - percentage structure is determined automatically on the basis of an actual amount of cost drivers registered in a particular period of time in the project module. 

Available types of calculations and analyses

Invar Cost Accounting enables performing calculations:
•    Automatic indirect cost distribution to cost positions (e.g. energy, heat, rent)
•    Cross-posting the cost of cost positions to other costs positions
•    Cross-posting of indirect manufacturing costs to direct manufacturing costs of orders with calculation and posting of idle production capacity.
•    Settlement of accounts of  semi-finished products deviations according to the standard cost
•    Settlement of accounts of long-term contracts in terms of MSR11
•    Posting and cross-posting WIP for the next month
•    Performing cross-posting for a month.

Implementation of Invar Cost Accounting enables performing analyses:
•    by using simple division and additional calculations it enables full cost estimation for a contract, order or a particular receiver.
•    it allows for measuring profitability on different organizational levels in accordance with a multi-stage cost calculation.
•    it enables analysis of cost of individual organizational units.

Accounting process automation - significant support for users

Invar Cost Accounting provides advanced controlling functionality, which supports the user by automating the process of reconciliation, starting with updating records with time-varying data, through generating a model settlement until their entry in the accounts.

After modeling the settlement in the first period of settlement, it is possible to automatically generate the model for each next period  on the basis of the previous one.

The user only updates the records with time-varying data:
•    the user completes the information in percentage structure of static cost drivers
•    updates information concerning percentage of project in progress realization
•    adds/removes Cost Centres to/from departments or cells to be accounted, if such changes occur between accounting periods.
After updating register by using one function the system generates an accounting model, based on data from the previous accounting period. It is possible to modify the model if the process of posting has not been initiated yet.
Posting of accountings can be initiated individually, collectively for queues of stages, collectively for the group of queues together with priorities, as well as for all queues and stages simultaneously. Flexibility of  queues and clear stage structure enables tracing accounting results within a single stage, while managing all groups of stages, which saves user’s time in routine operations processing.