For utility companies running the SAP ERP, HPC America is pleased to announce a new service that improves cost transparency, job estimation accuracy, and operational metrics monitoring. Based on our 20+ years of experience in utility financials, HPC Cost Flow Streamlining delivers the ideal mix of direct cost assignment, allocations, fixed overheads, and final cost settlement to help Accounting, Rates, and Operations perform their work more effectively with SAP software.
This service, typically completed within 3-6 months, minimizes SAP cost assessment processes that are often applied to expense and capital work but are confusing and difficult to explain—let alone plan for. HPC Cost Flow Streamlining replaces opaque allocations with transparent, easily understood overheads that enable project managers to plan and monitor the cost of work more accurately and consistently. Cost Flow Streamlining is available to utilities on ECC 6.0 and S/4HANA Finance.
Assessment Overuse and Misuse
Utilities are often frustrated with reports in SAP that are difficult to understand. We hear the same questions everywhere: Where did these overhead costs come from? How were they calculated? Why do amounts vary inexplicably every month?
If you’re asking these questions, too, then it’s likely that your cost flow model overuses or misuses assessments, which leads to “bucket dumping” costs in order to close the books. Accounting needs to spread overhead each month, but doing so without considering the confusing effects on field operations can defeat the benefits of cost accounting to control spending.
Key Benefits of HPC Cost Flow Streamlining
Utilities that engage HPC for Cost Flow Streamlining enjoy total visibility into both direct and indirect costs, with weekly or even daily job reporting of fully-loaded costs. We bring best practices from two decades of advising utilities to design the right combination of allocations and overheads for your particular needs. Our customers can easily forecast spending and control costs on everyday work orders, ranging from routine equipment inspections to large capital replacement projects. And their Rates departments can separate out costs into the appropriate regulatory categories far more efficiently. We design every solution to be compatible with regulatory accounts for a full end-to-end solution for utilities.
How Much Does it Cost to Run Your Utility?
Don’t leave your workforce in the dark when it comes to understanding the total cost to run the business. Rather, modernize your SAP Financials and empower your employees to know and fully control their costs. Contact us to learn more about HPC Cost Flow Streamlining for utilities on SAP.