Trusted Costing

Correctly allocating logistics cost and supply chain expenses to the business activity responsible is critical to managing your business effectively. Trax understands this and Trusted Costing brings together the tools, processes and core competencies to ensure that you can automatically allocate costs to your desired level of granularity. This enables you to manage your business on the activity driving the cost leading to better decisions.

Whether you want to automate a manual process, tie cost to the product SKU, establish activity-based management processes, or perform a quick P&L on a product, Trusted Costing is the solution for you. There are five major allocation approaches in common use today that represent different methodologies for accrual and booking of logistics cost.

Pre-Invoice Allocation
Post-Invoice Allocation
Post-Settlement Allocation
Pre-Invoice Accrual
Post-Invoice Accrual

These exist due to significant differences in cultural, legal, data availability and business maturity environments within countries and companies. Trusted Costing supports all five allowing you to mix and match these approaches as needed, seamlessly migrating transactions between approaches as maturity allows and business needs dictate.

Auto Allocate - Automatically allocate logistics costs to the general ledger, business unit, division, legal entity, project, or customer. Leverage Trusted Costing to support multiple levels and dimensions of allocation allowing you to understand logistics expenses from multiple points of views and levels of granularity.

Product Based Costing - Allocate logistics costs to the product SKU or line being shipped. Leverage Trusted Costing to ensure you know the true landed cost of your products and enable better decisions.

Quick product P&L - A unique set of analytical tools that allow shippers to perform a quick product P&L that will determine with 70% accuracy or better the profitability of each product without tremendous complexity.

Trusted Costing helps you understand and, thus better manage, what business activities drive the cost of logistics services and how these costs affect the landed cost of products. Specifically, Trusted Costing drives:

Accurate and timely allocation of logistics cost needed to accrue or book to the proper GL and cost center, product line or SKU
Accurate identification of the legal and reporting entities responsible for the activity
Accuracy in the identification of the business purpose and transaction type used to understand the reason for the expense
Quick product P&Ls that don't waste time with upfront complexity but provide an accurate assessment of the best and worst performing products

Trusted Costing
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