Financial Manager

INSIGHT's financial manager provides financial information for the management of cost and expenditure to contracts and business units of an organization. INSIGHT enables the analysis of historical and current financial activity, projects future financial needs and monitors and controls the use of assets and services as required by business units of an organization.

Unlike most ERP solutions, which address company accounting requirements and cost accounting and thus address time and materials billing to specific projects, INSIGHT uses activity-based costing (ABC) as a methodology for allocating costs for products and services to business units or cost centers within an organization, giving cost and profit control in the case of shared infrastructure or complex supply channels where the one to one association of time and material billing does not easily apply and profit reporting is associated to a project, contract or business unit.

INSIGHT uses ABC as a tool for planning and control. This approach addresses problems associated with traditional cost management systems that cannot accurately determine actual production and service costs or provide useful information for operating decisions. With these deficiencies, managers can be exposed to making decisions based on inaccurate data.

Therefore INSIGHTS's Finance Manager assigns costs to products based on the resources they consume. The costs of all activities are traced to the product for which they are performed. Overhead costs are also traced to a particular product, rather than spread arbitrarily across all product lines. The true cost of a product can be determined with more accuracy than was previously available with a traditional accounting system.

INSIGHT Finance Manger also addresses the enterprises issues relating to transfer pricing. Transfer pricing refers to all aspects of pricing arrangements between separate units--companies, business units or divisions--that are part of the same corporate group. It commonly applies to transfers of goods, services, intangibles, financing and technology cost-sharing arrangements.

INSIGHT supports transfer pricing practices, enabling companies to manage global policy that sets out the company's formal transfer pricing rules. INSIGHT provides the enterprise with the ability to define, manage and calculate transfer prices for each type of transaction. It supports the processes and procedures to be followed and roles and responsibilities to be assigned for managing transfer pricing on an ongoing basis. INSIGHT also supports the additional information required for rules covering use of outside vendors as an alternative to internal suppliers.

INSIGHT's Finance Manager enables the implementation and management of transfer pricing policy, allowing for the cost transfer of shared infrastructure to business units within the organization.