These cookies are required for the website to function properly. They ensure security, enable basic features like page navigation, and store user session data. You cannot disable these cookies.
- Cost Accounting
- Who it's for
- Shared service cost teams
Shared service cost teams
Facilities, logistics, IT and utility pools help a finance team classify indirect cost before it is reviewed against a standard baseline. Each pool belongs to an organization. The cost object record identifies the job, product or contract used in the comparison.
How Cost Accounting is set up for you
Service category
Cost Master Owner maintains the active pool and category.
Posting detail
Document lines shows quantity, rate and ledger account for the incurred charge.
Period review
Finance Reviewer checks released differences and open journals before close.
Facilities, logistics, IT and utility pools help a finance team classify indirect cost before it is reviewed against a standard baseline. Each pool belongs to an organization. The cost object record identifies the job, product or contract used in the comparison.
Start with one service pool and a single organization. Enter an issued estimate and an actual charge for one cost object. Check the controller decision and operation receipt, then release the scheduled variance. During the next period review, use the Ledger and Reconciliation page to locate unresolved journal or variance items. Keep the pool code and source references available when the charge arrives from an outside system. Review the [cost setup process](/cost-accounting/processes/cost-setup) before entering the first case and [implementation](/cost-accounting/implementation) before moving source records into regular use.
For the first review, keep the estimate record number, actual posting number and variance number together. Have the decision owner compare the charge to its source lines, then ask the finance reviewer to locate the operation result and journal reference. A corrected source should follow the same route so the team can explain both the original and revised amount. Check the pool organization again before approving the revised charge.
Features to start with
Roles on the team
- Cost Accountant
- Prepares standard estimates, actual postings and journal entries.
- Cost Controller
- Reviews actual postings and records the approval decision within assigned authority.
- Variance Analyst
- Reviews linked standard and actual cost and releases scheduled variance records.
- Finance Reviewer
- Reviews period status, ledger balance and retained decision evidence.
- Cost Master Owner
- Maintains cost pools and business partner cost objects for the organization.
Set up Cost Accounting your way.
Start free, then use Proto to change fields, steps and approvals before your team goes live.