Activity-Based Cost Logging Overview

Once you have set up ABC, the system automatically logs activity-based costs. When needed, users can also log activity-based costs manually.

Automatic Logging

The system detects and logs activity codes flagged as active on the ABC Code Maintenance screen. When a tracked activity triggers an auto group code, the system creates an entry in the ABC log. The log entry identifies the ABC activity and the transaction number. When you view a log entry in the ABC Log Viewing window, you can drill down to the transaction detail, expense category, and G/L pool information.

Logging Costs with Extensions

If you use the same auto group code to identify two or more different costs on a transaction, depending on whether the cost was the result of an internal problem or whether the customer caused it, it requires an extension.

When the system encounters multiple activities assigned to a single auto group code, it displays the activities and prompts the user to select the appropriate one to log. For example, if a customer returns an item because it is defective, no activity-based cost should be assigned to that customer. In this case, you would select the internal extension. If you want to prevent the prompt from displaying, you can assign the correct ABC extension during transaction entry.

For more information about extensions, see ABC Extension Concepts.

Logging Delivery Costs

When ABC delivery costs are added to a shipping manifest, the system associates a delivery cost with the ABC event. In order to verify this cost, the manifest must first be closed. These costs can be viewed only if all ABC log entries are viewed. Order-specific events do not reflect the ABC cost because the delivery cost is associated with the manifest, not the order.

Manual Logging

When you encounter a situation where the system would not know to record ABC activity, such as a sales presentation or a visit to the customer's site, you can enter a log entry to record those costs. You have the option to exclude the cost from the cost calculations, if you want to apply the cost to a specific customer instead of spreading it across to all customers.