Cost & Audit

Maintaining a clear picture of your financial health and ensuring accurate reporting are crucial for any business. However, managing costs, streamlining audits, and staying compliant can be complex tasks, especially for growing companies. Lucrum ERP's Cost & Audit module is designed to address these challenges head-on, offering a comprehensive solution for cost management, audit preparedness, and streamlined reporting.

Cost Accounting

Go beyond basic cost tracking with Lucrum ERP's Cost Accounting sub-module. This powerful tool provides a comprehensive view of your financial landscape – so you can make better decisions.

Technical Features

  • Track Direct & Indirect Costs: Capture and categorize all costs accurately, including direct materials, labor, and overhead expenses.
  • Multi-dimensional Analysis: Analyze costs across departments, projects, products, and other relevant dimensions for comprehensive insight.
  • Activity-Based Costing (ABC): Identify and analyze the cost of activities and their drivers, providing deeper insights into operational efficiency.
  • Cost Driver Analysis: Use statistical tools to identify key cost drivers and optimize resource allocation.
  • Cost Center Management: Define and manage cost centers for accurate cost allocation and control.

Budgeting & Forecasting

Accurately plan your future and stay on track with your financial goals with Lucrum ERP's Budgeting & Forecasting sub-module. Also, gain greater control over your spending and stay ahead of potential financial challenges.

Technical Features

  • Multi-dimensional Budgeting: Create budgets based on various dimensions like department, project, product, and time period.
  • Scenario Planning: Analyze different financial scenarios and adjust your budget accordingly.
  • Top-Down & Bottom-Up Budgeting: Combine both approaches for a comprehensive and balanced budget.
  • Collaborative Budgeting: Facilitate collaboration between different departments and teams during the budgeting process.
  • Real-Time Variance Analysis: Track budget variances by category, department, and time period.
  • What-If Analysis: Analyze the impact of potential changes on your budget and forecasts.
  • Predictive Analytics: Leverage machine learning algorithms to generate more accurate forecasts.

Cost Allocation

Precisely distribute costs across your business with Lucrum ERP's Cost Allocation sub-module. This allocation of costs across your business is crucial for informed decision-making and optimized resource utilization.

Technical Features

  • Define Flexible Allocation Rules: Customize cost allocation methods for various cost pools using activity-based costing (ABC), direct costing, or other industry-standard approaches.
  • Automate Allocation Processes: Schedule and automate recurring cost allocations, eliminating manual calculations and errors.
  • Track Allocation History: Maintain a detailed record of all cost allocations for audit purposes and transparency.
  • Generate Detailed Reports: Gain instant insights into allocated costs by department, project, product, or any other relevant cost center.
  • Multi-dimensional Cost Pools: Allocate costs across multiple dimensions like departments, projects, and activities.
  • Configurable Allocation Bases: Choose from various allocation bases like direct labor hours, machine hours, or transaction volume.
  • User-Defined Allocation Rules: Create custom allocation rules specific to your business needs.

Activity-Based Costing (ABC)

Lucrum ERP's ABC sub-module goes beyond traditional costing methods to provide a deeper understanding of where your true costs lie.

Technical Features

  • Identify cost drivers: Pinpoint the activities that consume the most resources, empowering you to make informed decisions about resource allocation and cost optimization.
  • Analyze profitability: Gain precise product, customer, or project profitability insights by accurately assigning indirect costs based on their activity drivers.
  • Improve decision-making: Make data-driven choices about pricing strategies, product offerings, and process improvements.
  • Multi-level activity hierarchy: Define activities, sub-activities, and cost pools for granular cost analysis.
  • Flexible cost driver selection: Choose appropriate cost drivers for each activity based on your business needs.
  • Automated cost allocation: Allocate indirect costs to cost objects based on their activity consumption.
  • Pre-built and customizable reports: Generate insightful reports on activity costs, cost drivers, and profitability.

Profitability Analysis

Understand your true earning potential with Lucrum ERP's Profitability Analysis sub-module. This powerful tool goes beyond basic cost tracking, enabling you to dissect profitability across products, customers, and projects with unparalleled clarity.

Technical Features

  • Multi-dimensional Analysis: Drill down into profitability by product line, customer segment, or individual project, uncovering hidden profit drivers and areas for improvement.
  • Margin Analysis: Calculate contribution margin, gross margin, and net profit margin, providing a comprehensive picture of profitability at various levels.
  • Variance Analysis: Identify and analyze deviations from planned profitability, enabling proactive corrective actions to optimize margins.
  • Profitability Ratios: Track key profitability ratios like return on investment (ROI) and return on assets (ROA) to measure overall business performance and track progress towards strategic goals.
  • Interactive Dashboards: Gain real-time insights into profitability trends through visually compelling dashboards, empowering data-driven decision making.
  • Data Warehousing & Business Intelligence (BI) tools: Leverage centralized data storage and powerful analytics capabilities for deeper insights.

Internal Controls Management

Mitigate financial risks and strengthen compliance with Lucrum ERP's Internal Controls Management sub-module. This also empowers you to establish and maintain a robust system of controls, ensuring the accuracy, reliability, and compliance of your financial data.

Technical Features

  • Define and Document Controls: Easily design and document your internal control framework, tailored to your specific processes and regulations.
  • Map Controls to Risks: Associate controls with identified financial risks for a clear understanding of mitigation strategies.
  • Monitor Control Effectiveness: Continuously monitor the effectiveness of your controls through automated workflows and risk assessments.
  • Generate Audit Reports: Produce comprehensive audit reports demonstrating compliance and control adherence.
  • Control Library: Leverage pre-built and customizable control templates for faster implementation.
  • Risk Assessment Automation: Streamline risk assessments with automated risk identification and scoring.
  • Exception Management: Track and address control exceptions efficiently through notification systems and corrective action workflows.
  • Integrated Audit Tools: Gain seamless integration with other audit and compliance modules for holistic risk management.

Audit Trail Functionality

Ensure complete transparency and accountability for your financial records with Lucrum ERP's Audit Trail Functionality within the Cost & Audit module. This sub-module meticulously tracks every financial transaction, providing an invaluable tool for internal control, compliance, and audit readiness.

Technical Features

  • Comprehensive Recording: Captures all changes and activities related to financial data, including additions, edits, deletions, and approvals.
  • Timestamped Entries: Each recorded event includes a detailed timestamp for precise tracking and analysis.
  • User Tracking: Identifies specific users responsible for each transaction, enhancing accountability.
  • Data Integrity Protection: Securely stores audit trail data with tamper-proof measures, ensuring its validity and reliability.
  • Flexible Search & Filtering: Easily search and filter the audit trail based on specific criteria, streamlining investigations and audits.

Technical Considerations

  • Database Technology: Leverages industry-standard relational databases for secure and scalable data storage.
  • Encryption: Employs robust encryption algorithms to protect sensitive financial information within the audit trail.
  • Access Controls: Granular access controls restrict unauthorized access to sensitive audit trail data.
  • Integration: Seamlessly integrates with other modules within Lucrum ERP for holistic financial data management.

Compliance Management

Ensuring adherence to evolving accounting standards and industry regulations can be a daunting task. Lucrum ERP's Compliance Management sub-module within our Cost & Audit solution simplifies this process and automates the operations.

Technical Features

  • Maintain centralized records: Store compliance requirements, relevant standards, and internal control documentation in a single platform.
  • Automate compliance tasks: Schedule and track mandatory reporting deadlines, audits, and internal control assessments to avoid non-compliance risks.
  • Generate tailored reports: Gain instant visibility into your compliance status through pre-built and customizable reports for regulatory authorities or internal use.
  • Stay informed: Receive alerts and notifications for upcoming regulatory changes, ensuring your compliance remains up-to-date.
  • Rule Engine: Automate compliance checks, triggering alerts for potential violations based on defined criteria.
  • Detailed Audit Trail: Maintain a comprehensive record of compliance activities, supporting regulatory audits and investigations.
  • Secure Document Management: Store compliance-related documents, certificates, and evidence securely within the platform.

Auditor Workspace

Simplify and accelerate your audits with Lucrum ERP's Auditor Workspace. This dedicated sub-module offers a secure, role-based platform for auditors to access, analyze, and export financial data efficiently.

Technical Features

  • Role-Based Access Control: Grant varying levels of access to different audit teams based on specific needs and compliance requirements.
  • Secure Data Sharing: Share relevant documents and data files with auditors through a secure, encrypted environment.
  • Advanced Search & Filtering: Query and filter data quickly and easily across various financial modules for targeted analysis.
  • Pre-built Audit Reports: Leverage pre-configured reports based on industry standards and audit procedures.
  • Customizable Dashboards: Create personalized dashboards to monitor key audit metrics and track progress.
  • Export & Analysis Tools: Export data in various formats for further analysis in external audit tools.
  • Data Encryption & Security Protocols: Utilize industry-standard data encryption and access control measures to ensure data security and compliance.
  • Single Sign-On (SSO): Simplify access with centralized login credentials for a seamless user experience.
  • Integrations with Audit Tools: Connect with popular audit software and data visualization platforms for enhanced analysis capabilities.

Data Mining & Predictive Analytics

Beyond basic cost management, Lucrum ERP's Data Mining & Predictive Analytics sub-module equips you with powerful tools to unearth hidden trends and proactively forecast future costs.

Technical Features

  • Identify Cost Drivers: Analyze vast amounts of historical data to pinpoint factors impacting your expenses.
  • Predict Future Costs: Leverage advanced algorithms to forecast cost behavior across departments, projects, and activities.
  • Make Informed Decisions: Gain data-driven insights to optimize resource allocation, negotiate better contracts, and minimize financial risks.
  • Advanced Data Mining Techniques: Utilize techniques like regression analysis, clustering, and anomaly detection to extract valuable insights from your financial data.
  • Machine Learning Algorithms: Leverage machine learning models to predict future costs with high accuracy, adapting to changing trends and patterns.