Cost breakdown structure

You can use TrueCost to build cost breakdown structures that break down expense items by resource type defined by the associated global ledger account expense item. TrueCost also supports costing analytics of actual and expected costs. Cost breakdown structures establish the cost breakdown hierarchies for costing analytics.

At least one cost breakdown structure is required for allocations and to use as a basis for cost analysis reports.

Similar to a standard chart of accounts, a cost breakdown structure is a hierarchical structure of posting and summary accounts that is grouped by resource type. A cost breakdown structure is often a subset of the chart of accounts, including only those accounts that are necessary for costing allocations and reporting. Define a cost breakdown structure based on the type of information you want to analyze in TrueCost. A standard chart of accounts can serve as a cost breakdown structure.

You can define a cost breakdown structure manually, or you can upload one with Infor Spreadsheet Designer. To create a cost breakdown structure manually, select Financials > Global Ledger > Setup > Finance Enterprise Group > Maintenance > Chart and create a new chart.

You can also manage existing cost breakdown structures from a TrueCost configuration.

Base Cost Structure

TrueCost is delivered with a cost breakdown structure called Base Cost Structure. Base Cost Structure is included to help customers maximize the benefits of costing functionality. Infor recommends you use the Base Cost Structure, modifying as necessary. If you do not use the Base Cost Structure, use this hierarchy as a guide when creating your cost breakdown structure:
  • OPERATING EXPENSES: Set this as the parent node of the cost model. Organize the rest of the structure under these children of the OPERATING EXPENSES node:
    • A-SUPPLIES
    • B-LABOR
    • C-EQUIPMENT
    • D-BUILDING
    • E-PROCESS
    • F-UNUTILIZED CAPACITY
    • G-OVERHEAD
    • H-EXCLUSIONS