Data & Technology for Costing
Build the data foundations that make accurate, scalable cost and profitability management possible.
What is Data & Technology for Costing?
This dimension covers the data quality, availability, and technology stack that underpins your costing model. It includes how you extract transaction data from your ERP or accounting system (SAF-T, API, exports), the quality of that data, and how it flows into your costing tool for analysis.
Why It Matters
Costing models are only as good as the data they consume. Poor data quality — incomplete transactions, wrong cost centre coding, inconsistent time records — corrupts your cost allocations and makes outputs unreliable. Technology enables scale: manual data collection limits frequency and granularity.
Maturity Levels
Where does your organisation stand?
Manual Extraction
Data extracted manually from ERP or accounting system. Error-prone and infrequent.
Structured Export
Regular data exports (CSV, SAF-T) with defined format. Manual cleaning required.
Integrated Feed
Semi-automated data pipeline from ERP to costing tool. Quarterly or monthly refresh.
Real-Time Data
Automated, validated data feeds. Near real-time or monthly refresh with quality controls.
How to Improve
Audit Your Data Sources
Map all data sources needed for your costing model: GL transactions, headcount, time records, volume data. Assess quality and completeness.
Define Data Standards
Establish coding standards for cost centres, accounts, and products. Ensure consistency so allocations are reproducible.
Build Your Data Pipeline
Implement a repeatable extraction process — SAF-T export, ERP API, or structured CSV. Automate where possible to reduce effort and error.
Comparing Approaches
| Data Approach | Data Quality | Scalable Refresh | Automation Level |
|---|---|---|---|
| Manual Data Collection | ❌ | ❌ | ❌ |
| Periodic CSV/SAF-T Export | ⚠️ | ✅ | ❌ |
| Automated ERP Integration | ✅ | ✅ | ✅ |
Frequently Asked Questions
What is SAF-T and how does it help costing?
SAF-T (Standard Audit File for Tax) is a standard format for exporting accounting transaction data. In Portugal and several other countries it's required by tax authorities. For costing purposes, it provides a structured, complete view of all GL transactions that can be fed directly into a TDABC model.
What data does a TDABC model typically need?
A TDABC model needs: (1) Financial data — GL transactions by cost centre and account; (2) Capacity data — headcount, machine hours, space; (3) Transaction data — orders, invoices, service calls; (4) Time data — where available, time tracking or estimates by activity.
What if my data quality is poor?
Poor data quality is the norm, not the exception. A good implementation approach starts with an honest data audit, prioritises fixing the data issues that most affect cost accuracy, and builds a model that is transparent about its assumptions.
Can I use CostCTRL with my existing ERP?
CostCTRL is designed to work with any accounting system that can produce a SAF-T file or structured CSV export. The platform includes data validation and mapping tools to handle common data quality issues.
Related Topics
Is your data ready for costing?
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