Optimize costs across the supply chain by collecting, analyzing, and evaluating a wide range of comprehensive cost data to unlock deeper insights and new opportunities.
Create value through cost optimization
Simply put, cost management is about calculating and accounting the cost of a product or service; however, this modest view excludes the value-adding service that cost accounting delivers to management in the form of additional information and insights into the business. The challenge is to quickly move from collecting and calculating costs to generating actionable insights and intelligence into inventory and work-in-progress values that create value through continual cost optimization.
Comprehensive Cost Management Solution: Dynamics 365 Supply Chain Management
Dynamics 365 Supply Chain Management’s cost management solution gives businesses deep insights into cost performance across the value chain in near real-time. It equips cost accountants with the tools required to move from collecting cost data to providing management with actionable information and reports.
The introduction of Global inventory accounting gives businesses the ability to account inventory in multiple representations, each following a set of defined inventory accounting rules for reporting purposes like Statutory, Consolidation, or Management accounting. Additionally, inventory can be accounted in a selected secondary currency
Gain deep insights into cost performance across the value chain in near real-time.
All-In-One Solution with Cost Management: Dynamics 365 Business Central
Dynamics 365 Business Central lets you define cost types, cost centers, and cost objects to analyze what the costs are, where they come from, and who should bear them. You define a chart of cost types with a structure that resembles your general ledger chart of accounts. You can transfer the general ledger income statement accounts or create your own chart of cost types. The system will walk you through a guided process to set up your chart of cost types including where cost centers are assigned and how costs are allocated.
4 Key Benefits of Cost Management with Dynamics 365
1. Better understand profitability
Better understand profitability by product to make more effective management decisions, such as setting reasonable product prices.
2. Drive cost optimization
Cost management analysis brings managers’ attention to variances between actual and planned costs and provides detailed insight into how variances occurred, allowing them to take adequate measures to optimize cost.
3. Spot trends and improve KPIs
Detect trends in valuation of inventories, and empower managers to take actions to drive improvements in key performance indicators like Inventory turn and Days of inventory
4. Make strategic data-driven decisions
Improve managers’ access to high-quality and contextual cost data to help enable more strategic decision-making by business leaders.
5 Key Features of Cost Management with Dynamics 365
1. Process documents and cost measures
Collect and process documents and cost measures in the specified inventory representations, applying relevant inventory accounting rules.
2. Define policies
Create and administrate inventory accounting rules policies to govern.
3. Analyze cost
Leverage embedded Power BI dashboards for viewing the status of inventories or perform cost analysis by product or product family.
4. Management reporting
Automate and streamline standard management reporting processes, such as inventory statements and inventory aging, and track key performance metrics.
5. Calculate and apply overhead
Improve and automate the processes of adding overhead costs based on rates or percentages on top of direct costs, like material and labor.
Dynamics 365 improves visibility and accessibility to business costs of inventories, empowering you to make better operational decisions, optimize costs, and maximize overall profitability.Agile Dynamics Solutions Dynamics 365 Solution Expert
Dynamics 365 business applications ensure business continuity through intelligent unified systems. Dynamics 365 business applications are highly composable and they can easily integrate with each other and other external systems to help you meet critical business needs like enhancing visibility, gaining agility, and empowering the workforce to ensure business continuity.
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