RCA Open-Source Application
Encyclopedia
ROSA, the acronym for RCA open-source application, is an open-source
management accounting
application that aims to provide decision support information to managers. Resource consumption accounting
(RCA) is a principle based approach to management accounting that combines German management accounting techniques known as Grenzplankostenrechnung
, or GPK, with a disciplined form of activity-based costing. RCA is internationally recognized as the most robust form of cost measurement and providing marginal cost analytics. For more on the International Federation of Accountants
(IFAC) assessment of RCA refer to their continuum maturity model. RCA's focus is providing clear links between operations and finance for decision support by managers and employees seeking to optimize enterprise production and support operations.
ROSA, classified as a non-web open-source application, brings many of the key modeling techniques of the RCA model to life with a hands-on approach, allowing the user full interactive modeling capabilities. All the necessary files (databases, applications, manuals, storyboard etc.) as outlined below under the ROSA open-source package, have been collected into one compressed zip folder for ease of download. This open-source application uses Microsoft Excel
as its interface, so the learning curve is accelerated due to this familiarity factor. The ROSA database is an open-source business intelligence (BI) application called Palo.
One database called ROSA base model database is a pre-configured RCA model, populated with data for the user to explore the look and feel of how a RCA model functions. A second database called ROSA Sample Model Database is a blank database that users can populate with their own data. A ROSA Manual and a visual storyboard (showing the pre-configured Base model's cost flow) will assist users in the basic understanding of the RCA model, from early configuration phases, through building their own RCA model.
. ROSA should be viewed as a cost planning and analysis tool and not a pricing/profitability application.
The ROSA open-source package contains the following elements:
Note: The Palo BI Suite support material should be used in conjunction with the ROSA Manual where necessary, particularly in areas concerning Palo installation, set-up and operation.
To obtain all the benefits Resource Consumption Accounting
as a dynamic, fully integrated, principle-based management accounting
approach more robust and integrated software application must be used. The most widely used software applications for RCA are SAP AG
ERP system and macs Controlling.
software engine called Palo (OLAP database)
, published by Jedox AG. Palo has been designed as an Add-in to spreadsheet software (i.e., Microsoft Excel
).
Open-source software
Open-source software is computer software that is available in source code form: the source code and certain other rights normally reserved for copyright holders are provided under a software license that permits users to study, change, improve and at times also to distribute the software.Open...
management accounting
Management accounting
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control...
application that aims to provide decision support information to managers. Resource consumption accounting
Resource Consumption Accounting
-BackgroundConcepts of Resource Consumption Accounting:RCA concepts that distinguish it from other management accounting approaches include the following:...
(RCA) is a principle based approach to management accounting that combines German management accounting techniques known as Grenzplankostenrechnung
Grenzplankostenrechnung
Grenzplankostenrechnung is a German costing methodology, developed in the late 1940s and 1950s, designed to provide a consistent and accurate application of how managerial costs are calculated and assigned to a product or service...
, or GPK, with a disciplined form of activity-based costing. RCA is internationally recognized as the most robust form of cost measurement and providing marginal cost analytics. For more on the International Federation of Accountants
International Federation of Accountants
International Federation of Accountants is the global organization for the accountancy profession. IFAC has 164 member and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants employed in public practice, industry and commerce, government, and academe...
(IFAC) assessment of RCA refer to their continuum maturity model. RCA's focus is providing clear links between operations and finance for decision support by managers and employees seeking to optimize enterprise production and support operations.
ROSA, classified as a non-web open-source application, brings many of the key modeling techniques of the RCA model to life with a hands-on approach, allowing the user full interactive modeling capabilities. All the necessary files (databases, applications, manuals, storyboard etc.) as outlined below under the ROSA open-source package, have been collected into one compressed zip folder for ease of download. This open-source application uses Microsoft Excel
Microsoft Excel
Microsoft Excel is a proprietary commercial spreadsheet application written and distributed by Microsoft for Microsoft Windows and Mac OS X. It features calculation, graphing tools, pivot tables, and a macro programming language called Visual Basic for Applications...
as its interface, so the learning curve is accelerated due to this familiarity factor. The ROSA database is an open-source business intelligence (BI) application called Palo.
One database called ROSA base model database is a pre-configured RCA model, populated with data for the user to explore the look and feel of how a RCA model functions. A second database called ROSA Sample Model Database is a blank database that users can populate with their own data. A ROSA Manual and a visual storyboard (showing the pre-configured Base model's cost flow) will assist users in the basic understanding of the RCA model, from early configuration phases, through building their own RCA model.
Purpose of ROSA Project
In 2009, the RCA Institute determined that a hands-on RCA model would be effective in demonstrating to interested parties typical RCA modeling results. The ROSA application answered this need, and was designed as an interactive tool to aid in better understanding the principles and costing approach of resource consumption accountingResource Consumption Accounting
-BackgroundConcepts of Resource Consumption Accounting:RCA concepts that distinguish it from other management accounting approaches include the following:...
. ROSA should be viewed as a cost planning and analysis tool and not a pricing/profitability application.
The ROSA open-source package contains the following elements:
- Installation manual – this file will guide you through the installation and set-up process. The first step in beginning the install process is by double-clicking on the Startup shortcut in the zipped folder.
- Palo For Excel installation file – this is the entire open-source business intelligence program called Palo For Excel that is required to run the ROSA databases and application files.
- ROSA base model database – a completely populated database showing a Resource Consumption Accounting (RCA) model that allows the user to view and manipulate data for a fictitious health care company referred to as ‘Get Well Manufacturing’ (GWM).
- ROSA sample database – a shell-like structure that has been constructed without any master data or cost data to enable a user to input their own data and create an RCA model using their company’s data.
- Excel application file – this Excel application file titled ROSA_v1_0 is the ROSA interface used to view, import, update, delete and calculate the rates as described and shown in the ROSA Manual.
- Visual representation of the Get Well Manufacturing Storyboard – this Adobe PDF file is a basic flow diagram of the fictitious pharmaceutical company and provides the users with expanded viewing capabilities of the resource pool, cost objects, and Provider / Consumer relationships in the Get Well Mfg. ROSA model.
Note: The Palo BI Suite support material should be used in conjunction with the ROSA Manual where necessary, particularly in areas concerning Palo installation, set-up and operation.
Features
Some of the primary features of the RCA Open-source Application are:- RCA modeling
- cost objects in an rca model
- planning a cost object's output and primary costs
- relationships in an rca model
- storyboard of a pharmaceutical company
- analysis of
- product costs
- resource pools and business processes
- fixed and proportional rates
- maintaining
- resource pools and business processes
- products
- primary costs
- secondary costs (internal consumption)
- capacity
- rate calculation
- configuring
- importing of master data and planning data values
Limitations
There are certain cost modeling limitations inherent in the ROSA application. These limitations are specific to Version 1.0 of the ROSA application and should not be viewed as static. In other cases, customized versions of ROSA have been developed to fulfill client-specific requests addressing their firm’s individual costing requirements.- No ‘actual’ costs – ROSA is a stand-alone application and does not have integrated links to import data. It supports the construction of an RCA model for cost planning and analysis. ROSA does not currently support the comparison of actual to plan within the application. The planning aspect allows for the definition of consumption relationships with operational resource quantities, valuing the resource quantities with dollars, and calculating product and service costs.
- Excess/idle capacity – There is a limited ability to isolate excess/idle capacity in the application. The application currently deals only with planned information and is therefore not able to provide information on actual excess/idle capacity.
- Model size limitation – The ROSA model was designed for optimum use for businesses with limited size RCA applications. However, the underlying database and technology used in this model is extremely scalable.
- No profitability reporting – Rosa Version 1.0 is solely for the purposes of cost modeling. Customer or product revenue cannot be accommodated in this Version 1.0 of the application and reports on customer or product profitability are not provided.
To obtain all the benefits Resource Consumption Accounting
Resource Consumption Accounting
-BackgroundConcepts of Resource Consumption Accounting:RCA concepts that distinguish it from other management accounting approaches include the following:...
as a dynamic, fully integrated, principle-based management accounting
Management accounting
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control...
approach more robust and integrated software application must be used. The most widely used software applications for RCA are SAP AG
SAP AG
SAP AG is a German software corporation that makes enterprise software to manage business operations and customer relations. Headquartered in Walldorf, Baden-Württemberg, with regional offices around the world, SAP is the market leader in enterprise application software...
ERP system and macs Controlling.
Architecture
This application uses an open-source Business intelligenceBusiness intelligence
Business intelligence mainly refers to computer-based techniques used in identifying, extracting, and analyzing business data, such as sales revenue by products and/or departments, or by associated costs and incomes....
software engine called Palo (OLAP database)
Palo (OLAP database)
Palo is a memory resident multidimensional database server and typically used as a Business Intelligence tool for Controlling and Budgeting purposes with Spreadsheet software acting as the user interface...
, published by Jedox AG. Palo has been designed as an Add-in to spreadsheet software (i.e., Microsoft Excel
Microsoft Excel
Microsoft Excel is a proprietary commercial spreadsheet application written and distributed by Microsoft for Microsoft Windows and Mac OS X. It features calculation, graphing tools, pivot tables, and a macro programming language called Visual Basic for Applications...
).