Define Cost Classes and Categories

Cost Categories are used for grouping and summarizing costs for reporting and chargeback. Cost categories are associated with cost classes that roll up cost categories to more general groupings. You first define a cost class and then add cost categories for it.

Cost categories include a Chargeback Definitions section that enables you to define how to roll up and prorate costs that are meaningful to your corporation, such as line items on your cash flow or income statements, so that you can report on and charge back these costs.

Use the Define Cost Categories by Classes task to add new classes and categories for your costs. You can also use the Define Cost Classes task to add cost classes.

The Business Process Owner can add cost categories from either the Cost Administration or Cost Chargeback & Invoicing applications.

Defining Subcategories for CAM Estimates and CAM Adjustments

To track CAM estimates and adjustments, the application provides the RENT - CAM ESTIMATE and RENT - CAM RECONCILIATION cost categories. If you would like to track these costs by subcategories, you can define additional cost categories, such as RENT - CAM ESTIMATE - WATER, RENT - CAM ESTIMATE - ELECTRICITY, or RENT - CAM ESTIMATE - SECURITY. This would enable you to track the breakdown for the CAM estimates. You could also define corresponding cost categories for CAM adjustments enabling you to reconcile CAM costs by category.

Step 1: Add New Cost Classes

Develop your cost classes, which provide the first level of roll-up above cost categories. You also have the option to assign the cost class a super-class. Cost super-classes provide a higher level of cost roll-up categorization.

To add a new cost class and optional super class:

Select Cost Administration/Business Process Owner/Define Cost Categories by Class task or the Define Cost Classes task.
In the Cost Classes section, click Add New.
A pop-up dialog appears.
Complete the following field, which is a required field:
Cost Class -- Enter a unique value to specify the Cost Class, which is the first level of roll-up above Cost Categories. This field uniquely identifies Cost Class records.
Complete the following optional field:
Cost Super-Class -- If you want to provide a roll-up level above the class, choose a value from the drop-down list, such as OPERATING EXPENSE.
Click Save.
The Cost Class appears in the Cost Class list.

Step 2: Add New Cost Categories

To add a new cost category:

Select Cost Administration or Cost Chargeback & Invoicing/Business Process Owner/Define Cost Categories by Class task.
In the Cost Categories selection list, click Add New.
In the Cost Categories section on the right, complete the following required field:
Cost Category -- Enter a unique value to identify the cost category, such as: BUILDING - MAINTENANCE, RENT - BASE RENT, TAX - PROPERTY TAX, TAX - SCHOOL TAX, UTILITY - ELECTRIC.
Enter the following recommended fields:
Cost Class -- Click the ellipsis, and select a Cost Class from the list.
Cost Type -- Select a value from the drop-down list. The Cost Type identifies cost categories with specific types. You can search for costs by type. See Cost Type for more information.
In the Chargeback Definitions section, select the Assigned To - Rolls Up To - Prorates To value for the cost.
Click Save.
Repeat steps 2-6 to enter all your cost categories.