Expense Management and Product Costing
Using 1C: ERP, one can record labor costs, material and financial expenses broken down by business areas. In the solution, company expenses are divided into:
- Product and service costs that are used for recording direct production costs in quantity measurement,
- Itemized expenses that are used for accounting of direct and indirect expenses in monetary terms,
- Generation of assets and liabilities that is used for recording manually managed operations or those required to be registered for keeping records.
Product and service costs can be allocated by volume (quantitative) indicators in physical units of measure according to rule, expense items or by releases.
Itemized expenses refer to expenses that are allocated only in monetary terms. One might attribute itemized expenses to goods cost, business areas, deferred expenses, production costs, capital assets.
Capital assets expenses might appear as broken down by different kinds of expense dimensions, for example:
- Fixed assets,
- Implementation of capital construction (facilities),
- Intangible assets (IA),
- Research, development, and technological works (R&D).
You can generate assets and liabilities to record other operations in the balance sheet, for example tax transfer, other income or expense.
Product Release Cost
Total production cost of goods and works is generated as broken down by costing items. Each costing item corresponds to a certain expense type.
You can calculate cost using real-time accounting data:
Preliminary calculation helps to assess value of purchased tangible assets during a reporting period. In this option, the average weighted estimate method is used.
Actual calculation is performed at the end of a monthly reporting period. Using this kind of cost calculation, you can select one of the following methods to determine value of tangible asset write-off:
- Monthly average means that goods write-off cost is determined by average price for the reporting period (average weighted estimate),
- FIFO (average weighted estimate) - write-off cost using FIFO is determined for a batch of retired goods,
- FIFO (rolling valuation) - goods write-off cost using FIFO is determined in full batch accounting.
Other Income and Expenses
You can register other company expenses, additional expenses on goods, deferred expenses.
You can register other income and expenses that are not related to sales of goods and services as part of core activity (dividends, deposit interests, and other). To keep accounting of other income and expenses, the solution features allow you to record:
- Registration of income and expenses
- Expense write-off
- Reversal of income and expenses
Balance Sheet Statement
To estimate financial situation of the company, you can use the Balance sheet statement report, which is a simplified version of a balance sheet.
Balance sheet statement helps manage assets and liabilities, control use of finances, it includes financial accounting data on goods, mutual settlements with customers and suppliers, balance of cash and non-cash funds, other assets and liabilities.
You can generate balance sheet statements for a company as a whole as well as every separate unit. You can explain every balance section up to a document that records separate business transactions. Information on disbalance is displayed separately, which allows you to detect possible errors.
The Income and expenses report will help to carry out a comprehensive analysis of all income and expenses as broken down by items.