Companies today can’t underestimate the importance of robust cost control measures to help maximize profitability. Managing costs doesn’t need to be overly complicated when you’re running a small business. Here are some tips on how you can
Microsoft Dynamics® GP can help with the following features:
- Purchase Order Processing (POP): This module within Microsoft Dynamics GP links the sales and purchase order processes to create a more automatic and streamlined workflow. In POP, you can set up replenishment rules for certain items, track vendor information, and have insight to product lead times that really helps the purchasing department phase purchases and better manage cash flow. With built-in replenishment features, insight into average lead times, access to purchase advice reports, and drop-ship capabilities, this module really helps you manage the costs associated with purchase order processing.
- Allocations: This feature allows companies to take bills such as utilities, rent, or insurance and allocate them across multiple departments. Through this functionality, costs are more accurately dispersed across the organization. Managers can report fully-burdened costs at any given time, helping them make sound business decisions. They can also easily analyze the net impact of certain cost centers or locations to help determine what steps may need to be taken. With Allocations in Microsoft Dynamics GP, you will have access to the complete picture, showing more accurately where you are spending your money.
- Analytical Accounting (AA): Acting like a sub ledger, Analytical Accounting in Microsoft Dynamics GP allows you to break down revenue and expense information to a greater level of detail without having to clutter your chart of accounts. For example, through AA you can track travel expenses per sales rep, per client or internal company projects such as remodeling the office or company events without adding segments to the chart of accounts. This deep level of insight helps you better manage, budget, and report on the specific sources of your expenses or incomes.
- Landed Cost: For some inventory purchases, it can be difficult to understand the full acquisition cost. For example, for imported goods shipping might include indirect costs such as taxes, tariffs, and insurance adding significantly to the item cost. Or in the case of products purchased locally, fuel surcharge can have a major impact on gross margin. If these total costs are not accounted for, you cannot intelligently price your products. The Landed Cost module in Microsoft Dynamics GP allows you to assign these additional expenses within the POP module so you can see the complete procurement cost of your inventory. This truer picture of your acquisition cost allows a company to better price and recoup its inventory investment.
These four features in Microsoft Dynamics GP help to ensure that you have the visibility you need for stronger cost control management and better business decision making.