The automated Accrualing Tool gathers on monthly basis all information on unbilled transportation costs. These costs are to be included in our client´s financial accrual. The data is in a form that meets both the accounting standards required by legislation and internal standards set by the budget supervisor. It is structured by individual cost centres, accounts and transportation companies.
Why Accrualing Tool
Client´s finance department, which is the budget supervisor in this case, creates a monthly accrual, i.e. a list of future expenditures. This department collects data from all departments of the company so that the monthly dinancial statement is complete. The more accurately the logistics department can calculate future bills the easier it is for keeping the books and for controlling of real expenses, including extra costs. The objective of the Accrualing Tool is to provide a multi-level control and absolute transparency in logistics costs. Much of the process is done automatically.
How does it work
The client cooperates with several transportation companies, which together make several thousands of shipments every month. Accrualing Tool automatically processes data on each shipment and its cost as well as data on additional costs.
Data about completed shipments from client´s database systems enter the service part of Accrauling Tool. The data goes through a series of calculations in the tool, which is linked to the Pre-Billing Tool. As a result, the data is sorted by carrier and by logistics channel. Cost is assigned to each shipment and linked to a specific cost center and account.
Transportation costs are checked by designated dispatchers. Dispatchers also input data related to any additional costs that could have appeared in connection with a particular shipment (waiting, longer distance, unexpected stops, etc.).
Next to the debit part with shipment costs there is a credit part where data from payed invoices is entered. The difference between billed and unbilled shipments forms the financial accrual for each logistics cost center. It comes in a form of the list of unbilled costs sorted by cost center, account and transportation company, which meets all requirements of the budget supervisor.
We are in charge of the regular updates of the Accrualing Tool and of preparation of the accrual for logistics department every month. In the area of supply chain finance management we have developed a number of other solutions for our clients, such as the Financial Planning Tool or DC Fee Management Tool.