Recommended ABC Software

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Recommended ABC Software
Hennie Stander, Accountant, South Africa, Member
Which software package would you recommend I use in our small business to enable me to setup an ABC-system?

ABC System Selection
E. Davydov, Consultant, Russian Federation, Member
Hi, it depends on:
1) The size of your organization.
2) Organization specific issues.
3) ABC accuracy (is it enough to have 70%?).
4) Your purpose of using ABC.

ABC Software
E. Davydov, Consultant, Russian Federation, Member
Moreover, I have experience to develop ABC model in Excel and I think that if the purpose of ABC is only management accounting (I mean that result of your calculation will not cover annual audit check) you should use Excel, because:
- Itís simple.
- You need 1-2 month for developing and testing you model before it gives you a real result.
- You can develop a number of reports that you manager needs.
The above of course assuming your company is not a huge corporation.

Excel-based Activity Based Costing
Edgar Sapitan, Accountant, Philippines, Member
I am also planning to create an Excel-based ABC. Have you come with cost allocation down to per product? My manufacturing industry I am working with comprises 70 products.

Flexible ABC Software
Jayaram, Management Consultant, India, Member
I agree that an ABC model can be developed in Excel, but then sustaining it could be a big headache. By its very nature any ABC costing involves processing of huge amount of financial & non financial info.
As someone who has worked on both Excel & software I can confidently tell that a good flexible software package is the answer. Most of ABC sw are of standalone type with limited integration possible with ERP. I can suggest Abis~Pro developed by my employer Pro~Active with confidence.
I have worked as a client with them prior to joining as a consultant & successfully implemented it for a 400 crore auto ancillary company. It has also been implemented for firms in 50 - 100 crore range also.

ABC Software
Joseph Rivera, Manager, Philippines, Member
I would assume that the 70 products are the final cost objects. If they are, then I foresee a very difficult time for you should you choose reciprocal costing as part of your consumption-based allocation,because Excel can only handle up to 32x32 matrix and the 70 products are way more than this, though it is not impossible. You can Google 'cost allocation' as a start to help you on your model.

Implementing ABC Software
Jim Monahan, Business Consultant, United States, Member
I just implemented a great ABC software at a US insurance company, very detailed. This software was inexpensive, and extremely flexible. This can be modeled to your needs easily. Contact me for the info... Jim.

ABC Software in Oracle
ANDRES PENAGOS, Financial Consultant, Colombia, Member
Due to a big information load, an ABC model produced in Excel is not a good way to handle it. There is software created for small, medium and large companies developed on Oracle database and the application is also in Oracle. It works for services or manufacturing companies.

Problems with Reciprocal Assignments
Jim Doorly, Accountant, Ireland, Member
The biggest problem with Excel and indeed with some of the lesser ABC packages is that it is not possible to do reciprocal assignments, e.g. the maintenance department assigns cost to the accounts department for painting and the accounts department assigns cost to the maintenance department for doing the payroll.
Unless you have a good package you will get different final costs depending on which assignment you do first. A real situation was where we wished to know the cost of generating a KW of electricity: do you assign electricity costs to the desalination plant first or do you assign desalination costs to the electricity plant first?
In Excel the costs of generating a KW of electricity will be different in each case and which is the correct answer?
In a good ABC package there is no such problem.

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