A Non-profit Entity Case Study
Case 2:
Enabling a Process Centric Management Approach at a Quasi-government Postal Service Provider.
A quasi-governmental agency that provides national postal services in North America desired to enable their process-centric approach to management with ERP technology. The client's SAP R/3 was the technology of choice to realign their monetary management information with an activity/process view covering approximately $4 billion in annual expenses. The client required resources with in-depth knowledge of advanced managerial accounting practices as well as multiple costing applications, specifically SAP R/3 and Oros. Alta Via Consulting was selected because of our specialty knowledge in both these areas.
Analysis and design entailed the definition of key data elements, determination of cost flows and assignments, collection of metrics and drivers, identification of reporting needs and solutions for supporting full costs of the activities/processes performed. Construction and implementation involved SAP system configuration of the SAP CO sub-modules. The result was an integrated activity-based costing solution utilizing the SAP R/3 system, while utilizing the Oros product as an ABC modeling tool to calculate product/service rates.
Major project tasks included:
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A sophisticated system design to capture rates and metrics by organization and activity,
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Management presentations of design concepts and system configuration,
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Master data definitions,
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Labor payroll interface definition,
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Customer specific tracing factor tracking mechanism by organization and activity to support cost flows, and
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Cycle detailed sheets and optimization of the allocation cycles.
