Cost type
Use this function to define types of cost that can affect a project such as raw materials, labor costs and indirect costs.
Cost types are assigned to every line in a project budget structure for recording expenses against a particular project.
Prerequisites
Refer to documentation Implementation
Screen management
The Cost type function contains a header information section, a set of expense categories fields against which the cost type is authorized and fields applicable to each type of expense.
Header
Presentation
The Home section provides the details of the cost type and the group to which an individual cost type is assigned.
The group to which an individual cost type is assigned enables consolidation of the expenses on the project budget structure in the Financial overviews.
As every budget line in a project budget structure is assigned to a cost type you must consider this when defining your cost types. You would use a labor cost type to track workload and time spent on projects, such as on project task operations and work order operations. You would use a material cost type to track all product-related costs, such as purchasing products and issuing stock to work orders. You would use an accounting expense cost type to track direct financial costs and overheads, such as expense notes and BP invoices.
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Fields
The following fields are present on this tab :
| Use this field to assign this cost type to a specific site. |
| Use this field to assign this cost type to a specific cost type group. Cost type groups, for example, Sales, Development, Labor, Products on demand, Products in stock, provide a means of grouping together similar cost types. This might be for statistical purposes or for identification purposes. Cost type groups enable consolidation of the expenses on the project budget structure in the Financial overviews (in the Cost types table (grid)). |
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| Type in or select a cost type code. Cost types are used by Project management. Project cost types define types of cost that can affect a project such as raw materials, labor costs and indirect costs. |
| Type in a description for this record (maximum 30 alphanumeric characters). |
| Enter the short description. By default the short title, the long title or the column header of a data are recorded (on creation/update) in the connection language of the user.
A user who logs on with this language will view the short description, long description or column header in their connection language if a translation exists. Otherwise, these descriptions will be available in the folder language.
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Tab Cost type
Presentation
You use this section to describe the type of expense (labor, purchases, stock issues, indirect costs (such as overheads)). For reference puposes, you can indicate which expense categories the cost type is authorized for.
The authorized expense category check boxes are for reference only.
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Fields
The following fields are present on this tab :
Information
| Click this check box if this cost type is a material cost type. You would use a material cost type to track all product-related costs, such as purchasing products.
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| Click this check box if this cost type is authorized for labor costs. You would use a labor cost type to track workload and time spent on projects, such as on project task operations and work order operations. |
| Click this check box if this cost type is a material cost type. You would use a material cost type to track all product-related costs, such as issuing stock to work orders. |
| Click this check box if this cost type is authorized for accounting expenses. You would use an accounting expense cost type to track direct financial costs such as specific journal entries, expense notes, BP invoices and indirect cost types. |
Labor unit
| In a labor context, a cost type defines the types of labor resource that can affect a project such as conception or operator costs. Use this field to define the unit in which labor is costed. For example, 'Hours'. |
| Use this field to define the currency in which labor is costed.
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Grid Labor rate
| Multiple labor rates can be defined, each rate defined by an activation date. Use this field to define the date from which this particular labor rate applies. |
| Multiple labor rates can be defined, each rate defined by an activation date. Use this field to define the labor rate to be applied from the associated activation date. |
Saleable product
| Use this field to define this cost type as potentially 'saleable'. The code you select must be a service item. Saleable items are used by the Project management sales automation functionality to generate the list of saleable products on a project (called from the project budget level or the project task level). The service item you define in this field will be included in the list of saleable products on a project, if this cost type is defined on a project budget line for a chargeable budget code, or to a resource planned for an operational task. Sales documents will be linked to the operational task code. |
Indirect costs
| Click this check box if this cost type can be applied to a project as an 'indirect cost'.
For indirect costs to be assigned to a project, a cost type defined as an 'indirect cost type' must be associated with this cost type. The percentage uplift to be applied to costs associated with the linked indirect cost type must also be defined. The financial overview will then increase costs for this cost type from the linked (associated, indirect) cost type by the percentage defined. For example, the cost type 'Purchase department' can be defined as an 'indirect cost' on a project. This cost type ('Purchase department') can be linked to a different cost type such as 'Special procurement' and an uplift percentage of '10%' applied. The project financial overview will increase (uplift) all budgets and expenses assigned to the cost type 'Special procurement' by 10% based on the Purchase department costs.
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| Use this field to define the indirect cost type to be associated with this cost type when 'indirect costs' are to be applied to a project.
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| Use this field to define the percentage by which costs associated with the indirect cost type linked to this cost type are to be uplifted.
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Accounting
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Tab Financials
Presentation
You use this section to track Project management costs in finance. You can assign an Accounting code to each cost type, and create analytical dimensions for each cost type and each project code.
Fields
The following fields are present on this tab :
Block number 2
| Use this field to specify the accounting code of the site. |
Grid Analytical dimensions
| This field displays the dimension type flagged as a 'cost type' dimension type for the analytical ledger flagged as a Project management ledger on the current company.
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| Click this check box to create and assign this analytical dimension code to this dimension type.
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| Type in or select a dimension code to assign to the associated dimension type.
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Tab Cost group link
Presentation
You use this section to associate a project cost type with standard cost groups.
Cost group types, for example, Material, Machine, Labor, define the standard cost breakdown for a product. The project Budget automation creation functionality uses the association between a project cost type and a cost group to automatically initialize the appropriate budget lines based on the Standard cost breakdown for a product.
The product must be associated with a project task line to be included in the Budget automation process.
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Fields
The following fields are present on this tab :
Grid
| Use this field to associate a cost type group (Material, Machine, Labor) with the current project cost type. |
| Use this field to associate a specific material cost type group with the current project cost type. The list of material cost type groups is defined in Local menu 325. |
| Use this field to associate a specific labor cost type group with the current project cost type. The list of labor cost type groups is defined in Local menu 316. |
| Use this field to associate a specific machine cost type group with the current project cost type. The list of machine cost type groups is defined in Local menu 316. |
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Error messages
In addition to the generic error messages, the following messages can appear during the entry :
Creation of analytical dimension [dimension code] for dimension type
This message is displayed if parameter PCCAUTCRE-Create cost type dimension (TC chapter, PJM group) is set to 'Confirmation'. You must choose whether or not to create the dimension code displayed.