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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.

 
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

Description
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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