Fair and transparent shared services costing and chargeback

Shared services costing

Shared services can account for a large proportion of costs, especially within companies in the financial services industry.

To get accurate product and customer profitability, and to fully understand costs, it's essential for these companies to be able to transform cost center allocations into fair, transparent and reliable shared service costing.

Prodacapo's solution for Activity Based Costing/Management – Prodacapo ABC/M - offers flexibility and functionality which makes advanced cross-charging straightforward.

Shared services chargeback

Companies implement shared service centers to reduce costs, improve efficiencies and create the highest quality of service at the lowest price for their business units.

In order to create a successful win-win relationship between the shared service center and the business units, it's important that the charging back for the services is fair and transparent.

• Shared service centers want to demonstrate the value for money that business units are receiving. They also want business units' active collaboration to be able to reduce costs, as the business units' demands and their processes affect the shared service center's costs.
  
  
• Business units want to understand what they pay for, and they do not want to subsidize other business units. They also want costs to be predictable.

Activity-Based Costing (ABC) is excellent for shared service chargeback as it makes the cost-allocation fair, transparent and predictable. It also provides the basis for a clear and easy-to-understand invoice.

This helps shared service centers justify their costs. It also helps business units understand what their usage of shared services cost them and lets them make informed decisions to control and reduce their costs.

Activity-Based Costing also provides shared service centers with better information for continuously improving internal efficiency and for benchmarking. This ensures that services are competitive with the external market.

Use Prodacapo Activity Based Costing/Management software:

- for simple or advanced shared service chargeback

- at one shared service center or at several shared service

  centers across the globe

We have the solution that meets your need.

By adding the Prodacapo solution for business planning, shared service centers can make rapid forecasts when demand changes and can align resources accordingly.

Learn about the Prodacapo software solution for Activity-Based Costing/Management »

Learn about the Prodacapo software solution for Business Planning »

Learn more

For more information contact us or a Prodacapo partner.