General Ledger (GL) Cost Analysis enables managers and analysts to quickly access the transactional data behind GL journal entries and investigate and analyze critical cost and revenue information to improve expense management and organizational profitability. Cost Analysis provides detailed analysis of the values distributed to certain categories of expenses—such as travelling, repairs and maintenance, general expenses and donations—within a single ledger account. Detailed distribution to analysis categories is enforced throughout the system.
The Cost Analysis information can be viewed in the G/L Query program, which provides a summary and detailed analysis for the selected ledger code. This information is only displayed for ledger codes for which G/L cost analysis is required.
In order for G/L Cost Analysis to be performed against a G/L code, it needs to be defined as requiring G/L cost analysis and an analysis category associated with it. When posting to a G/L code which requires G/L cost analysis, the detailed information is posted by selecting the analysis type from the category and then the analysis codes relevant to the type followed by the amount. For example a Travel G/L code, requiring G/L Cost Analysis could be linked to a category called travel, which has transport, accommodation, purpose and region types associated with it. These types in turn are further broken down into analysis codes of air, car hire, hotel, B&B, Prospect, existing customer, conference, and northern, southern, eastern respectively.
The benefits of General Ledger Cost Analysis
- User-defined analysis categories for company-specific requirements
- Automatic categorization in reports and queries for reduced manual analysis of expense-type accounts
- Multiple categories tracked in a single account, therefore fewer account codes required