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Abstract: Implementation of Enterprise Resource Planning (ERP) system is questionable and cost-intensive activity of enterprises. ERP is the software program that integrates information across the enterprise function. Given the fact that the overhead costs are generally increasing and represent significant portion of the overall costs, more detailed management and calculation of these costs is required. This is connected with creation of the Activity Based Costing (ABC) and Activity Based Management (ABM) methods. ABC is based on the substance of costs incurred in the enterprise. All costs are incurred in connection with particular activities within the enterprise. Therefore, it is critical to correctly define the individual activities and their relation to the particular costs (cost driver). One of the challenges to ABM adoption has been the increase in ERP systems and its implementation. One of the leaders of enterprise software product is "Systems, Application and Products" (SAP), which provides implementation of ABM, including Activity Based Budgeting (ABB). This article is focused on the area of ABM and ABC and its application in the enterprise practice. The case study solves implementation of ABM model in SAP. ABM model implementation is described in the following steps: definition of the enterprise structure and relationships, preparation of the base data in SAP, planning process in SAP (ABB model), and process of allocation of actual costs (ABM model). The attached tables include the allocation process of the budgeted and actual costs based on model data of a fictive enterprise. The model data present implementation bottlenecks and describe problems and demands of implementation. The case study was prepared based on practical experience with ABM model implementation in SAP in the medium-size enterprise. The article presents modern management accounting and costs management practices in connection with managing the performance of the enterprise and application of the ABM as an important part of the ERP implementation.
Keywords: enterprise resource planning system, activity based management, ABC, calculation, SAP
1. Introduction
The cost management and the way of cost allocation to particular cost drivers leads to early detection of potential inefficient activities. This is considered to be a key aspect for ensuring the viability of each enterprise, especially during the economic crisis. Developing IT systems constantly require faster access to information. Therefore, during the...