I Business Process Overview
AS IS – COST CENTRE ACCOUNTINGI Current method Cost Centre Accounting
Microsega follows the method of booking of expenses as per cost centers. Following is the informationpertaining to the cost centre accounting in current system :Overheads are booked cost centre on daily basis.Provision of overhead done as per cost centre.In case of common expenses booked to the cost centre, an allocation is done to the receiver cost centre. This is a period end activity. Some instances of distribution cycles are: Buildingrent, Condomini, Cleaning services, Telecommunications (Telecom), Coffe break services,Printing and stationery, Moto boy services, Equipments Insurance.Sales and material consumption is not booked to cost center.In Microsega cost centre is mandatory only for the those accounts for which it is configured. Alist of GL codes for which cost centre is mandatory is attached as per
Annexure A.II Cost Center Budgets
Cost centre budget are maintained in the system by cost centre and GL codes.There is no mechanism in microsega restricting the spend of actual expenditure within budget.
III Cost Center Reports (Actual x Budget)
Budgets are updated in current Microsega by Cost centre.Cost centre report Budget vs Actual is available in the system. This report is available for a singleperiod as well as accumulated. All the department heads have access to this report. Analysis of the budget vs actual is done by a Finance team member and reasons for variancesasked for.