Juni 2005 WINLine ® Cost Accounting. Juni 2005 COST Accounting – Data From: ACC1 ACC2 ASSET ...

Juni 2005

WINLineWINLine®® Cost AccountingCost Accounting

Juni 2005

COST Accounting – Data From:

ACC1 ACC2 ASSET PAYROLL PROD

Juni 2005

Concepts

Entry of costs • Mostly in ACC1

Cost Distribution• Distribution of costs/revenues to

organizational units (cost centers) Cost Allocation

• Allocation of costs to operational projects (cost objectives)

Juni 2005

COST Procedures

Full cost accounting• All costs are distributed to the cost centers

and cost objectives Partial cost accounting

• Only costs directly caused by a cost objective are distributed to the cost objective

Juni 2005

Time Aspect

Actual cost accounting • Comparison of the actually incurred costs in a

past period of time Planned cost accounting

• Future costs will be planned Target cost accounting

• Analysis of ACTUAL units based on budget calculation rates

Juni 2005

Cost Type Organization

According to contributing source • Material costs• Worker costs• Energy costs• etc....

Juni 2005


According to use:• Variable costs• Fixed costs• Variable overhead costs

Juni 2005


According to Type of Entry• Direct Costs

• Direct costs, e.g., piece wages, raw material direct costs, etc.

• Indirect costs• These costs cannot be attributed directly to a

cost objective (e.g., administrative and marketing costs)

Juni 2005

Variator

The variator defines the proportion of cost that is variable • 0 = 100 % fixed costs• 10 = 100 % variable costs• 7 = 70 % variable costs

Juni 2005

Index

Permits the conversion of expenses into costs (during posting)

Example: • Acquisition value = 10,000• Replacement value = 15,000• Index = RV/ AV * 100 = 150

Juni 2005

Cost Centers

Organizational units within a business Divisions:

• Main cost centers• Production• Administration/Marketing

• Indirect Cost Centers• Holding units that are entirely allocated

Juni 2005

Calculated Costs

Cost types can be calculated per cost center based on previously defined basic cost types (e.g., payroll secondary costs based on incurred piece wages)

Juni 2005

Cost Objectives

Distribution of direct costs Pre-calculation based on past values

(Budget-Overhead burden rates) Post-calculation based on the overhead

burden rate calculated in the Expense Allocation Sheet

Period (duration)

Juni 2005

Allocation

There are five tab areas in the menu item: • METHOD (one-time setup)• PLAN (one-time setup)• ALLOCATION (automated allocation

suggestions based on current allocation percentages)

• 13. Period – for monthly aliquote calculations (e.g., from asset management)

• VOID (Cancel allocation without recalculation)

Juni 2005

Cost Allocation

Automatic suggestion of all existing allocation plans.• The system date is suggested as posting

date. Manual change is possible. • Posting period from the Company Base Info is

suggested. More than one period can be selected.

• Allocation can be executed as often as desired. Any previous allocations are deleted and a new total allocation per period is calculated.

Juni 2005

Allocation - Method

One-time definition of allocation method• Recieving cost centers: Definition of cost

centers to which entered costs that have temporarily been held in “Indirect Cost Centers“ will be allocated.

• Entry of cost type that should be employed as calculation basis.

• Calculation basis formed based on posting amount or unit is possible.

Juni 2005

Calculation Basis-Verh.zahlen

Calculation basis is formed based on the percentage porportion of receiving cost centers. • Based on posted costs • Based on posted revenues • Based on posted units (hours, kg, m²)

The calculated proportion factors can be queried with the PROPORTION FACTORS button.

Juni 2005

Allocation - Plan

One-time setup of the cost centers that should be allocated. • Allocation method:

Selection of an existing method (source cost center and destination cost center for allocation).

• Indirect cost centers:Entry of indirect cost center to be allocated.

• Cost types:To allocate individual portions of a cost center, it is possible to restrict to particular cost type areas here.

• Allocation cost type:To easily identify allocation lines, it makes sense to assign an individual allocation cost type.

Juni 2005

13. Period

Postings from Period 13 (e.g., depreciation from ASSET)• These postings are automatically allocated spread

over all fiscal year periods on an aliquote basis.

Juni 2005

Allocation – Void

All executed allocations per period are shown in the Void tab area. • During cancellation, all allocation lines of the

selected period are deleted. • And the new allocation is not automatically

calculated (this would normally occur when allocation is executed again for the period).

Juni 2005

Planned Costs Accounting

Setup of a planned cost type with units and a provisory costing rate per unit (e.g., hourly rate)

Budgeting of cost centers/cost objectives by unit planned costs (planned units, planned rates)

Entry of ACTUAL units (hourly billing, etc.) Target costs (ACTUAL units to planned rates)

Allocation based on performed units results in a ACTUAL rate ACTUAL costs (ACTUAL units at ACTUAL rates).

Juni 2005

WINLineWINLine®® ASSET ASSET

Basis SeminarBasis Seminar

Juni 2005

Scope of Functions

Depreciation • annual• periodic

Asset Overview/Depreciation Preview Asset Base Info Acquisitions/Disposals Unit values Investment allowance list Valuation Reserves

Juni 2005

ACC1 Interface

Automat. adoption of tax-based depreciation to ACC1

Adoption of period depreciation to ACC1

Juni 2005

COST interfaces

Automat. Adoption of implicit depreciation to COST (based on repurchase value, or implicit useful life, allocated to periods)

OR:As as alternative, an adoption to COST with the book values from ACC1 can be executed.

Juni 2005

Asset Parameter

Default posting account for depreciation Default depreciation rules Lower limit unit value % Useful life in months Reminder value option IA update for selected asset groups Info on last implicit or tax-based

depreciation run Post costs with ACC1

Juni 2005

Asset Categories

Default for stock merchandise: ACC1 account Vendor Inventory description Useful life Asset type (LV asset, etc.) Default deprec. rules IA, accel. deprec Write-off type

Juni 2005

Data Entry

Acquisitions• A new asset is posted either as separate

inventory object or as a sub-asset to an existing asset.

Juni 2005

Data Entry

Partial value disposal• A portion of asset value is lost (damage, sale,

value depreciation, ...)• Automatic calculation of disposal value (BV

and depreciation)• Recalculation of remaining book value and

new annual depreciation

Juni 2005

Data Entry

Transfer• An asset value is transferred to another asset

(e.g., activation of building under construction to a Building)

• Automatic recalculation of book value and annual depreciation

Juni 2005

Data Entry

Disposal• An asset is completely disposed of (i.e., is

automatically posted off the books)• Automatic calculation of disposal

depreciation and disposal value based on BV and asset value

Juni 2005

Data Entry

One-time (extraordinary) write-ups/write-offs

Asset Modification• Correction of existing Base Info in case of

commercial obsolescence, damage, regulatory change, or unforeseeable losses in value, etc.

Juni 2005

Data Entry

Performing tax-based depreciation• periodic (monthly, quarterly, etc.)• At year’s end, whereby all values for periodic

depreciation are automatically corrected and reposted based on the current asset conditions.

Juni 2005

Theoretical Considerations

Depreciation• Distribution of acquisition or production costs

over the useful life• For acquisitions after 1.1989, you can no

longer apply accelerated depreciation

Juni 2005


Valuation guidelines• Relaxed lower of cost or market principle

• Depreciable fixed assets (machines, office equipment,...)

• Non-depreciable assets (land, patents, investment paper)

Juni 2005


Accelerated Depreciation• Only applicable in exceptional cases since

1.1.89 (additional write-off of 40 % of asset value in year of acquisition)

Juni 2005


Straight-line depreciation• Acquisition value/production costs are

equally distributed over the useful life Declining balance depreciation

• Percentage of depreciation is not calculated from AV, but rather from residual book value

Graduated depreciation • Percentage that can be assigned over a

period of several years. Depreciation is based on the acquisition value.

Juni 2005

With a common asset management system – independent of country – all depreciation rules can be used.

The date of acquisition forms the basis• 0 – exact monthly deprec. calculation• 1 – semi-annual depreciation (A)

Check whether acquisition was in first or second half of year and either six or twelve months depreciation, respectively.

• 2 – annual depreciationIndependent of acquisition, the entire annual depreciation is applicable.


Juni 2005

Declining balance depreciation – with automatic switch to straight-line depreciation

Graduated depreciation – for fixed business assets (buildings) – separate depreciation graduations

Special depreciation – in first two years up to 20 % of acquisition value can be applied in addition to annual depreciation.

“Pro ratio temporis“ rule / simplifications rule


Juni 2005


Consumption depreciation• Depreciation amounts are based on

consumption rate values of asset (e.g., gravel pit)

Extraordinary depreciation• Extraordinary depreciation, i.e., the asset

value may be decreased by a partial value (see lower of cost or market principle)

Juni 2005


Date• Acquisition date

• Relevant for posting of investment allowance

• Date of start-up• Relevant for depreciation calculation

(semi-annual rule)

Juni 2005


Low-value Assets• Depreciable assets whose AV or production

costs do not exceed ATS 5,000 (excl. VAT)• Can be written off 100% in year of acquisition• The unit value is decreased for five running

years by 20 % respectively

Juni 2005


Investment Allowance• An investment allowance of X % (depending

on type of asset and date) can be applied to reduce profits.

• The asset must have a minimum useful life of four years and be used domestically.

• The IA can only be applied to acquisition costs or production costs that occur before December 31, 2000.

Juni 2005


Investment allowance• After a period of four years the IA is posted

tax-free to the capital account (or taxable reserves account)

• If the asset is disposed of within four years, a penalty of 5% annually is payable on the IA

Juni 2005


Investment Reserves• Dissolving the IR occurs by acquisition of

assets with the amount that can be applied as IR.

• If the IR is not fully consumed within four years, the remaining portion is to be dissolved as increase in profit with a penalty of 5% annually.

Juni 2005


Valuation reserves • For this reason, hidden asset reserves that

have belonged to corporate assets for a minimum of seven years can be transferred to a “same type” asset within three years (decreasing acquisition value and therefore also annual depreciation)

• If not transferred within three years, dissolution is performed with a penalty of 5% annually to increase profit.

Juni 2005


Dissolution of Valuation Reserves• Reserves of accel. depreciation

• After write-off of acquisition value, this can be annually dissolved to increase profit

• Hidden reserves • This can be dissolved in same proportion of

annual depreciation to acquisition value.

Juni 2005 WINLine ® Cost Accounting. Juni 2005 COST Accounting – Data From: ACC1 ACC2 ASSET ...

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