In the current competitive market climate where companies face pressures of new competitors, it becomes essential to have a software solution to determine which products, customers, channels (and other factors) impact on the profitability of the organization.

Companies needs to understand, through Activity Based Costing (ABC) models, how internal processes impact on the costs and how to intervene in these processes in order to improve the profitability of the entire organization.

Tagetik 4.0 provides a collaborative environment to foster communication and improve the process of analysis is indispensable to define the models of cost allocation, perform drill-down at the highest level of detail. In order to analyze this information with precision and ease, companies require specialized, highly flexible software tools.

Tagetik 4.0 Cost allocation & profitability analysis functionality empowers business users to:

• Modeling: map of the control structure for cost objects, activities, resources and their relationships
• Allocations: powerful allocation models that allocate costs and revenues to the subjects of control (resources and activities) and indirect costs the final subjects of analysis (customer, product, channel, ...), with waterfall cost allocation cycles
• Drivers: cost drivers based on financial and operational (quantity, head count, …) criteria to be used as basis for allocations
• Reporting and Analysis: reports that visualize the results of the different allocation cycles and analyze profitability with navigation using filtering and drill-down tools (down to individual allocation lines) and automated adjustment journal that provide detailed analysis of the different allocation models
• Journal entries: manual adjustments and automatic double entry
• ‘What-if’ Analysis: generate alternative analysis scenarios based on simulation  
• Interfaces: automatic data import from multiple sources (e.g. ERP systems, …)
• Traceability: manage various accounting standards by segmenting your data into different components (ceding entity, receiving entity), analyzing data to the maximum detail.
• Workflow: data processing is completely mapped.

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