Annual and quarterly subscriptions, software license and hardware maintenance costs, costs of cleaning and maintenance of company buildings, subscriptions for professional literature, insurance contracts and energy costs. Examples of operating costs that have to be distributed over a period of time.

You would like to post ongoing costs, that are often billed per year of per quarter, in the right period to keep all financial data as realistic and reliable as possible and to minimize the impact on the operating result.

In addition, you may expect costs at the end of the year and you want to be able to work with a preliminary calculation to be sure your margin is as reliable as possible in the accounting system.

Allocate ongoing costs

Standard Dynamics NAV has none to very limited possibilities to implement cost allocation in such a simple and manageable way. In practice, many Dynamics NAV users encounter errors, because most of the postings have to be done manually.

Accounting periods in the general ledger and credit administration are opened up in time which causes incorrect posts. Corrections are often forgotten which results in incorrect financial reports.

The overview of the financial data is getting lost and you have to deal with messed up data.

Solution

With the Cost Allocation module you are completely in control of your costs. You process your invoices in accordance with your normal process, thereafter you can decide how these invoices should be distributed based on templates, such as:

1. The automatic transfer of the amount that has to be distributed to a balance sheet of the prepaid expenses. (E.g. rent, licenses or insurances);
2. From there, allocate the costs at the right time in the right period;
3. Other options are allocation to dimensions, other accounts or even link to pre-calculations.

First, all costs allocations are presented to you in a proposal where you can easily change your own parameters. In a clear dashboard you can exactly see when which costs are being posted and keep a grip on your periodic posts.

Clearing costs

When allocating costs over a period, you can also take expected and actual costs (pre-calculation and subsequent) into account. At the time of billing, the interim accounts are automatically settled and the actual costs are posted.

Cost allocation 2-Control

Cost allocation is easy to set up and can easily be managed with simple post functions. Users do not need to open additional accounting periods unnecessarily, or create and maintain manual posts in the general ledger. No more need of unclear Excel sheets.

The Cost Allocation add-on also provides an overview for Planning & Control employees that clearly shows the outcome of balance sheet accounts. Cost Allocation for Dynamics NAV is quickly implemented and saves costs from the first moment of use. Want to get in control of your costs too?