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Cost Accounting

Design Objectives

The Cost Accounting module of System 20/20 is a "job cost" module, which allows you to manage the costs of your cost centers.  The term, "cost accounting" is used instead of the more common term, "job costing" because cost centers may represent either real projects or departmental cost centers.

The design objectives of the Cost Accounting module are to provide management with concise and complete reports showing how actual performance compares with budgeted performance. In the predominant area of costs, this translates to a comparison of the "actual cost of work performed" (ACWP) with both the "budgeted cost of work performed" (BCWP) and the "budgeted cost of work scheduled" (BCWS).

The Cost Accounting module has two primary objectives. First, it enables you to budget the production operations of your company; you can compare the actual performance of those operations against the budget to supply each level of management with the information essential to make timely, accurate and effective decisions.  The second objective is to provide a detailed cost subledger to your company's General Ledger. These principal objectives are met through the use of the various data elements that are maintained in the Cost Accounting database.

Features

bulletConforms with Department of Defense C/SCSC requirements, and has passed the DOD compliance criteria.
bulletMultiple work breakdown structures can be defined and each of these utilize the following "key" data elements:
bulletCompany is the "Owner" of cost center
bulletOperating Center is responsible for the cost center within the "owning" company
bulletCost Center is job, project, or department number
bulletLevel is the hierarchy in work breakdown structure
bulletCost Account is the work package or task
bulletData Type differentiates cost, production, revenue, and schedule data elements
bulletDetail Code differentiates expenses within data type, e.g., separates labor costs by craft
bulletUnlimited user-defined data types, e.g., labor, material, subcontract, contract revenue, change order revenue, schedule, etc.
bulletAllocation of payroll burdens to each cost center via user-defined options.
bulletUser-defined "summarization" rules for aggregating cost accounts within multiple work breakdown structures; i.e., cost center subtotaling can be completely independent of the cost account code.
bulletDetail code options by cost center by source module, e.g., labor costs from the Payroll module by craft, or by employee.
bulletBilling surcharge accrual tables enable the system to compute customer billing surcharge amounts using either a surcharge rate or a lump sum amount.
bulletMultiple cost centers can be processed simultaneously.
bulletWork breakdown structure for each cost center is user-defined.
bulletMultiple work breakdown structures can be processed simultaneously for each cost center; however, the system only requires the entry of source transactions to a single work breakdown structure.  This feature permits the generation of reports according to multiple charts of accounts, e.g., the project manager's, an estimating standard, the client's reporting requirements, etc.
bullet"Actual" or "committed" options available for processing and reporting cost center data.
bulletPeriodicity for transaction accumulation by cost center is user-defined, e.g., weekly, biweekly, semi-monthly, monthly, or fiscal period.
bulletRetroactive report generation delineates a project's progress; these options are accomplished by the accumulation of all data elements in the Cost Accounting database by period.
bulletCost Variance analysis results in a quantitative evaluation.  You can define "variance codes" and assign a percentage weighting factor by period to the cost variance amounts.
bulletUser-defined labor charge rates expense labor costs to specific cost centers.  These rates are used to override the actual payroll rates in the payroll module and replace them with rates that may be used for billing jobs.
bulletAccrued costs can be recorded and automatically reversed.
bulletCommitted costs, invoiced costs against commitments, and open commitments by purchase order and subcontract within each cost account can be reported.
bulletFlexible budgeting techniques. A budget can be passed to the Cost Accounting module from the Estimating module, or can be entered directly into the Cost Accounting module. If entered directly, the budget can be expressed as either the "total budget" for the cost account or as the "incremental budget" by cost center period.
bulletBoth original and current budgets are maintained by the system.
bulletEarned budgets (BCWP) are determined by optional methods:  (1) computation based on physical progress achieved, or (2) allocated budgets entered by the user.
bulletContinuous projection of costs at completion based on actual performance utilizing a user-selected algorithm.
bulletEstimated cost at completion can be entered as either the "total" projected cost or the "remaining" projected cost.
bulletContinual computation of the following key management data elements:
bulletPercent complete
bulletBudgeted cost of work performed
bulletBudgeted cost of work scheduled
bulletActual cost of work performed
bulletCurrent and to date cost variance
bulletCurrent and to date schedule variance
bulletEstimated cost at completion
bulletEstimated cost variance at completion
bulletEstimated schedule variance at completion
bulletPreparation and generation of customer invoices in custom or standard AIA formats.
bulletMultiple methods of arriving at invoice cost.
bulletTime and materials billing capability allows you to bill at an individual cost transaction level through the utilization of billing rate schedules.
bulletIncome Recognition processes automate the computation of General Ledger journals according to user-specified rules. 
bulletExternal audit requirements can be met through the compilation of detail transactions.
bulletMulti-level Cost Account On-line inquiry provides immediate access to detail transaction information for cost accounts.
bulletCost Account Selection Screen
bulletBudget Detail
bulletActual Detail
bulletCommitment Detail
bulletMulti-level Cost Center On-line inquiry enables you to easily track the detail transactions associated with the costs, revenue, and production amounts accumulated in each cost center.
bulletCost Center Selection
bulletCost Center Recap
bulletMargin Analysis by period
bulletCost Account Group Summary
bulletCost Account Summary
bulletCost Account Detail
bulletBudget, Actual Cost, Commitment & Projection Transaction Listings
bulletTransaction Detail
bulletRevenue Account Group Summary
bulletRevenue Account Summary
bulletRevenue Account Detail
bulletBudget & Actual Transaction Listings
bulletTransaction Detail
bulletProduction Account Summary
bulletBudget, Actual & Production Transaction Listings
bulletTransaction Detail
bulletProject schedule data can be entered either directly or through the interface with a CPM module.
bulletSpecification of non-linear distribution of resource consumption over the scheduled duration of a cost account.
bulletExecution schedules associated with cost accounts compute the budgeted cost of work scheduled (BCWS) for each cost account.
bulletThe Cost Accounting database is specifically designed to facilitate the generation of user designed report formats using the operating system's integral report writer.

Module Interface

The following System 20/20 modules send ( Þ ) transactions to and receive ( Ü ) transactions from the Cost Accounting module.

Module Transactions Sent and Received
Accounts Payable Þ Actual invoiced costs, quantities and commitment relief’s
Accounts Receivable Þ Actual billing
Contracts Management Þ Cost and/or revenue budget revisions
Equipment Þ Rental charges
Estimating Þ Revenue, cost and production budgets
Fixed Assets Þ Asset depreciation charges
General Ledger Þ Adjusting journals
Inventory Þ Inventory issues
Payroll Þ Actual labor costs and hours, labor accruals
Purchasing Þ Commitments and commitment relief transactions
Receiving Þ Estimated costs related to delivery tickets and commitment relief’s
Subcontracts Þ Commitments and commitment relief transactions
Work Order Þ Work order costs and billings
Accounts Receivable Ü Invoices for cost center billing
General Ledger Ü Cost and revenue transfers, cost and revenue journals, income recognition journals, billing surcharges, cost allocations

Reports

All standard reports provide multiple selection options.

Control File Section Listings Production Budget Transaction Ledger
Cost Center Listing Actual Production Transaction Ledger
Cost Center Chart of Accounts Production Projection Ledger
Cost Center Summarization Revenue Transaction Subledger
Cost Center Allocation Revenue Analysis
Cost Account Summarization Revenue Margin Analysis
Cost Account Detail Revenue Transaction Ledger
Cost Account Variance Analysis Revenue Budget Transaction Ledger
Cost Account/Schedule Status Revenue Projections Ledger
Cost Account Bar chart Customer Billing
Cost Transaction Subledger Billing Surcharges
Cost Analysis Income Recognition Journal
Cost Budget Transaction Ledger Income Recognition Status
Actual Cost Transaction Ledger Customer Payment Status
Cost Projection Ledger CSSR - Cost / Schedule Status
Cost Variance Analysis CPR - Work Breakdown Structure
Cost Audit Detail CPR - Functional Categories
Overhead Cost CPR - Baseline
Manpower Efficiency CPR - Manpower Loading
Commitment Analysis CPR - Contract Funds Status
Commitment Transaction Ledger Functional CPR
Production Analysis Functional Variance Summary
Cost Accounting/General Ledger Reconciliation Functional Performance Summary

Construction Information Systems, Inc.

 
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