ABCosting and ERP Systems

Enterprise Resource Planning (ERP) systems are essential to properly manage manufacturing types of organizations. There are many different departments in any business and the information those departments need to do the work properly is generated in other departments at the same time, this means that they need to work together to serve the clientele satisfactorily as data exchange is vital for their regular operations.



Manufacturing companies would use ERP systems to combine the information gathered from planning, purchasing, inventory, sales, marketing, finance, and human resources to facilitate coordination and increase efficiency both in operations and management. These systems usually are executed in the form of software tools that provide a web environment where employees can load their operational information with ease making the reporting part fast and easy.

As ERP systems are essential to the administration of the company, ABCosting systems can use the same operational information and interpret it from the financial perspective. Not only allowing both methodologies to work together but actually making them absolutely necessary of one another.

The ABCosting system will track how much resources are being utilized both as direct costs and overhead (indirect) costs by all the different processes and compare them towards the final product, service, channel, or administration costs to determine profitability and cost reduction opportunities to name a few simple benefits.


For more information on how Activity-Based Management / ABCosting can help your business achieve new levels of profitability without losing Value, p