SAP Business One - Cost Accounting (2)

Cost accounting is used to track the various cost and cost centers of a business. Using cost accounting, you can track departments, divisions, or various geographies as if they were separate entities. You can determine how much spending or revenue is being generated for various business purposes. In Europe and other parts of the world, segmented charts of accounts are not considered Generally Accepted Accounting Practices (GAAP); cost accounting is the prevalent method used. Using cost accounting can help you reduce the number of general ledger accounts that need to be maintained. For example, instead of having a separate revenue account for each department, product line and location, you can have just one general account, the total of which is then divided between the cost centers through reporting.