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Cost Allocation

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A Cost Allocation Module is needed between the various departments and units in the Hospital , to help in stabilizing the cost of services rendered to the community.

The following has been extracted from a recent RFP. I've included it here for your reference. It may prove useful for anyone preparing such a document.
Please feel free to comment on this list, and propose any items that you think should have been included in this list.

Cost Allocation

A Cost Allocation Module is needed between the various departments and units in the Hospital , to help in stabilizing the cost of services rendered to the community

>>> General
1 Provide Allocation of actual or budgeted amounts
2 Provide Allocations to accounts: expense, income, asset , liability, capital , other
3 Provide Allocations to centers : responsibility, cost, departments, profit, other
4 Provide allocations to user-defined areas

>>> Cost Data
5 Provide multiple calculation code tables
6 Provide labor , equipment, overhead rates
7 Provide parameters to link rates to operations
8 Provide item and item group level surcharges: fixed amounts, percentage of total costs, percentage of added costs, percentage of selected total/added costs
9 Provide Surcharge base
10 Support subcontracting and corresponding rates per individual calculation code
11 Support automatic generation of surcharge based on surcharge base quantities

>>> Cost Allocation Definition
12 Provide cost pool dimension codes and types
13 Provide user defined allocation codes for all allocation activities
14 Provide Allocation code for posting results to General Ledger
15 Provide Allocation codes for defining cost dimension types
16 Provide Allocation codes for budgets
17 Support Simulation of multiple cost allocation codes
18 Provide Cost driver types: system master data, production/distribution data
19 Support Automatic cost driver updates
20 Provide user defined cost categories of grouped ledger accounts
21 Ability to transfer of ledger account amounts to cost categories: total, partial transfer
22 Provide user defined activities
23 Provide user defined cost object made up of activities
24 Provide analysis of activities consumed in each cost object

>>> Cost Allocation Process
25 Ability to allocate by quantity statistics, amounts , percentages
26 Provide formula based allocation: factors unlimited , statistical , fixed amounts , period-to-date
27 Provide cost category allocation of costs from one dimension code to another
28 Provide source and target dimension codes of differing dimension types
29 Provide cost allocation between different pool dimension types
30 Ability to post cost allocation results to general ledger
31 Provide cost allocation via sequential close out, simultaneous close out
32 Provide multiple allocation methods: percentage, volume or statistic, weighted average, standard cost, direct allocation, combination of above
33 Allocation reports document to-from sequence, from-to sequence
34 Provide multiple step allocation, first to account then to reports
35 Ability to mass allocate actual balances, budget balances
36 Provide allocation source : group of accounts/departments
37 Provide allocation results : direct posting with audit report
38 Provide allocation results : journalized for posting
39 Ability to allocate for reporting purposes only no posting
40 Ability to allocate using actual data, budget data , historical actual , historical budget
41 Ability to define allocation factors/processing and retain for future/recurring use
42 Possibility to reallocate
43 Maintain history of allocations for comparative reporting

>>> Types of Allocation
44 Ability to perform fixed or variable percent allocation calculations or use fixed amounts
45 Ability to reverse allocation results, without rerunning allocations
46 Types of Allocations :- Fixed percent
47 Types of Allocations :- Variable percent ( based on changing values , such as head count)
48 Types of Allocations :- Fixed amount
49 Allocations of Earmarked donations
50 Layered or step-down ( one allocation is the input for another allocation )
51 Multiple method ( allocation part based on one factor and the rest based on another factor )

>>> Queries
52 Cost allocation results by various combinations of accounts / cost centers
53 Ability to display budgeted versus actual allocations
54 Ability to inquire by cost center or in summary

>>> Reports
55 Report allocation results
56 Report allocation from current period results, quarter-to-date results, semi-annual results, annual results
57 To-from and from-to allocation control reports
58 Allocation distribution definition report
59 Posted allocation control report

>>> Integration
60 General ledger
61 Payroll
62 Budget

Last Updated ( Tuesday, 28 October 2008 01:06 )  

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