Does your organization struggle with allocating shared services to the business areas in an efficient, equitable and transparent manner? Can you explain shared service cost allocations to the business areas with clear visibility on what business services they are receiving for the cost they are allocated?
Companies leverage shared service cost allocation schemes that are:
- Inefficient – requires a high degree of manual effort and resources
- Inaccurate – allocation logic is based on generic % splits and facts that are not correlated with the level of shared services consumed by a business area (e.g., allocate based on revenue or sales)
- Opaque – the method used to allocate cost cannot be easily reported or explained to the business areas receiving the allocations
- Risky – regulatory issues with transfer pricing methods
Acorn Systems' Shared Services Manager (SSM) remedies the above mentioned issues & provides the following benefits:
- Efficient processes – requires less time and resources
- Accuracy – system can leverage unique cost allocation facts for every shared service center without limits
- Transparency – automated reporting that provides visibility to the origination of the cost, its final destination and any point in-between
- Objectivity – allocations are fact-based and generated in correlation to how a business consumes shared services