We had requirement for extensive of cost allocation to generate different types of profitability statements for management reporting. Financial impact for the cost allocation was not required. So we tried to use the Cost Accounting module and across following Gaps -

•Option to perform allocation based on different financial dimensions in the same distribution policy is required e.g. for SKU wise profitability, allocation of cost based on Cost center dimension is required for certain GL whereas for other GL's cost allocation based on SKU dimension is required

•Option to perform allocation across dimensions is required e.g. cost charged to cost center is required to be distributed to SKU dimension in combination with multiple dimensions.

•Option to upload statistical dimension values based on multiple financial dimension combination and to use the same for allocation is required for e.g. quantity uploaded in combination of Cost center and SKU dimension should be used to perform allocation from cost center to Cost Center + SKU dimension based on the quantity uploaded

We are using following dimensions - Segment (SG), cost center (CC), SKU

Example -

Expense 1 booked on Segment and Cost center dimension. Now, to generate SKU wise profitability cost booked in SG+CC dimensions needs to be distributed between SG+CC+SKU dimension based on statistical data.

So, Source value to be picked from SG+CC combination and allocated to SG+CC+SKU dimension combination based on the statistical data at this level.

Also, in a single profitability report there will be requirement to allocate certain cost from SG+CC combination whereas other cost from SG dimension and remaining from SKU dimension.

Business Case:

This kind of complex allocation options are required in multiple industries to generate various profitability statement. Since Dynamics doesn't support this requirement businesses have to either use ISV solution or customization or 3rd party systems.

Customer wise profitability, Segment wise profitability, SKU wise profitability, Profit center wise profitability, etc. are the most common examples of profitability statements in industries. To generate these reports allocations are required to distribute various costs based on different source & metrics.

Ask

Cost accounting module can become a great solution if we can have all these kinds of allocations available in that module, it can increase management experience and reliance on Dynamics system. This will enable key management decisions.