PeopleSoft Activity-Based Management Business Processes
Image: Activity-Based Management business process
The following process flow illustrates the 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.