The Cost Allocation Agent transforms traditional cost allocation by automating key steps and enhancing accuracy throughout the process. The agent automatically groups indirect costs into logical pools based on behavior and purpose, and intelligently suggests optimal allocation drivers by analyzing data correlations. Driver data is collected and validated from multiple operational systems, eliminating manual pulls and filling data gaps.

Dynamic hierarchy mapping helps ensure that cost centers, products, and projects are up to date, while allocation calculations including complex step-down and activity-based costing are performed transparently and efficiently. The agent explains allocation variances with driver analysis, provides real-time profitability calculations with drill-down capabilities, and automates the posting of allocation journal entries with full audit trails.

Management reporting is enhanced with dynamic, scenario-based insights, and the agent continuously suggests model improvements based on accuracy analysis and organizational changes. This end-to-end automation empowers finance teams to reduce manual effort, improve allocation accuracy, and respond quickly to business changes driving more informed decisions and greater financial control.

This professional service utilizes Amazon Bedrock, Bedrock Agents, Strands Agents, Lambda and OpenSearch.