PeopleSoft Activity-Based Management Business Processes

Activity-Based Management is an analytical application that supports the measurement and management of your organization's current costs today and enables you to better plan for the future. It successfully integrates the proven computational power, leading-edge technology, and operational and financial information available with Activity-Based Costing/Management (ABC/M,) and Activity-Based Budgeting (ABB) theories and practices. This combination provides unrivaled strategic cost management and overcomes data integrity, transformation, and repeatability issues that troubled earlier cost management efforts. PeopleSoft Activity-Based Management aligns advanced cost management techniques with multidimensional profitability analysis and reporting and supports business process reengineering efforts. It provides a flexible, object-based solution that can easily adjust to your organization's unique business processes, activities, and data sources.

Activity-Based Management models are highly integrated with operational and financial information. They are flexible and easily adjusted to your organization's unique business processes, activities, and data sources. Activity Based Management can calculate five model types: Budget, Actual, Capacity, Frozen and Combination.

These model options enable you to:

• Calculate variances from actual costs such as spending, volume, and capacity variances.

• Attribute dollar amounts to entities that operate at greater or less than their capacity.

• Maintain a more constant consumption pattern over time.

• Link strategic choices with their operational impact.

• Use a mix of rates, budget, actual, capacity, or frozen as necessary for your organization.

• Perform unlimited 'what if' planning and simulation.

Activity-Based Management offers the following features to follow the general activity-based management business processes:

• Understanding Activity-Based Management models, modeling components, and rate types

• Using trees with Activity-Based Management

• Setting up Activity-Based Management models and scenarios

• Setting up attributes, cost of capital, resources, and ledger mapping rules

• Setting up activities

• Setting up cost objects

• Setting up pointers, implicit pointers, and transaction pointers

• Setting up drivers

• Generating and maintaining models

• Processing in Real-Time Activity-Based Management

• Processing batch models

• Reconciling your model and analyzing engine output

• Using employee profile

• Using reciprocal allocation looping

• Using Activity-Based Planning and Simulation

• Modeling for service-related industries

We discuss these business processes in the business process topics.