Products Combine to Provide Customer & Product Contribution Margin
Analysis, Accurate Costing & Integrated Business Planning
PITTSBURGH, Oct. 23 /PRNewswire/ -- macs Software
(http://www.macssoft.com), a member of the Oracle PartnerNetwork, today
announced that it has integrated its software to the Oracle(R) E-Business
Suite.
macs' ability to assign customer-specific costs and differentiate
between fixed and variable components complements Oracle Gross Margin
Reporting. This allows clients to create contribution margin statements at
the customer and product level. Contribution margin is the difference
between net sales revenue and variable costs. The depth of the customer
contribution margin statement is expanded by macs Software's ability to
associate customer service costs like freight, rebates, commissions, cost
of holding inventory, claims, and customer- specific R&D directly to a
customer. All this is performed without extending the general ledger.
The macs Software product income statement leverages Oracle's sub
elements, split between fixed and variable components creating a product
contribution margin statement at standard. Production order variances are
brought into the contribution statement enabling the contribution margin
statement at actual.
Ranking Your Customers & Products
Contribution margin ranking of customers and products assists clients
in focusing its production and sales and marketing efforts. Should capacity
in a certain area be limited (bottleneck) the organization knows which
products/customers should receive higher scheduling priority -- as it is
clear which products and customers ultimately contribute the most to
overall organizational profitability.
"In today's business environment, contribution margin ranking is
imperative. Clients need to know where their customer and product
contribution margin (profits) are coming from so that they can focus their
efforts with laser sharp precision," says Chris Meyer, CEO, macs Software
North America. "Working with Oracle allows us to provide the added business
intelligence clients require to increase organizational profitability."
Flexed Performance Reporting
macs complements Oracle resource prices by being able to calculate the
resource rates split between fixed and variable components. The
relationship between fixed and variable is maintained enabling "flexing" of
the standard. (Flexing is where variable cost is adjusted based on actual
volume of output.) This is of particular relevance in the production and
support departments where flexing of the standard can take place at the
general ledger account level enabling more accurate performance analysis.
Using macs Software, general ledger accounts can have both a fixed and
variable portion (i.e. semi variable). This eliminates the need for having
a general ledger account be defined as solely fixed or variable. Variance
analysis comparing actual costs to a flexed standard (flexible budget)
provides a higher quality of performance evaluation than merely comparing
actual costs to a static budget.
Integrated Business Planning
The benefit of macs Software's integrated business planning
functionality is that it allows customers to create a sales and operation
plan, exploding the bill of materials and routings, plan for departmental
resource demand, plan costs both fixed and variable at the account level,
calculate resource rates and product costs and then combine the plan sales
volume/sales prices to arrive at a planned profit and loss statement. This
process can be repeated multiple times. The same process can also be used
for simulations, forecasts and scenario building. The Result is that
organizations are better able to quantify the forecasted outcome of a set
of differing scenarios.
macs Software will be exhibiting their Costing & Profitability
Solutions at Oracle OpenWorld 2006 in San Francisco, October 22-26.
About Oracle PartnerNetwork
Oracle PartnerNetwork is a global business network of 17,700 companies
who deliver innovative software solutions based on Oracle software. Through
access to Oracle's premier products, education, technical services,
marketing and sales support, the Oracle PartnerNetwork program provides
partners with the resources they need to be successful in today's global
economy. Oracle partners are able to offer their customers leading-edge
solutions backed by Oracle's position as the world's largest enterprise
software company. http://oraclepartnernetwork.oracle.com
About macs Software
macs Software (http://www.macssoft.com) focuses on Advanced Costing
Software assisting organizations:
-- identify more accurately contribution margin potential of its
products, services and customers through its profitability analytics
capabilities based on improved costing accuracy
-- improve the quality of financial planning using an integrated
business and scenario planning process
-- enabling sound corporate performance management.
Press Contact:
Chris Meyer
1-800-946 3160
chris.meyer@macssoft.com
http://www.macssoft.com
Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of
Oracle Corporation and/or its affiliates.
This release was issued through eReleases(TM). For more information,
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