Using cost categories

Create cost categories manually

To create cost categories manually:

Create cost categories in the Cost Categories (tfcat0102m000) session.
Define the ledger account(s) related to the cost category, in the Ledger Accounts by Cost Category (tfcat0103m000) session.

Create cost categories by importing ledger accounts

This method is based on the ledger accounts' sublevel and the parent-child structure.

To create cost categories by importing ledger accounts:

Start the Cost Categories (tfcat0102m000) session.
On the appropriate menu, click Import Ledger Accounts or click Import Parent Ledger Accounts.

All ledger accounts with sublevel zero will be imported and created as a cost category related to the ledger account.

Example of imported ledger accounts

Source		Created cost categories
Account	Sublevel	Cost Category	Account by Cost Category
1000	1
1001	0	1001	1001
2000	2
2100	1
2101	0	2101	2101
2102	0	2102	2102

Example of imported parent ledger accounts

Source		Created cost categories
Account	Sublevel	Cost Category	Account by Cost Category
1000	-
1001	10	1001	1001
2000	-	2000	2100
2100	20	2100	2101, 2102
2101	21
2102	21

Cost calculation of allocation relations

The following calculation example of allocation costs uses a budget year allocation relation. The same budget year allocation relation applies to budget period or actual allocation relations.

This data is defined:

Cost category	4711
Ledger account	5800, 5820

Single Dimension Budget per Year
Year	2013
Budget	BUD
Dimension type	1
Dimension code	ABC
Reference unit	KWH

Ledger accounts	Total	Variable	Fixed
5820 (primary)	1,000	400	600
5830 (primary)	20,000	10,000	10,000

5800 (sec. debit)	10,000	4,000	6,000
5810 (sec. credit)	5,000	2,500	2,500

Performance quantity

100.0

Allocation relation
Relation	Budget year
Year	2013
Budget	BUD

	Source	Destination
Dimension Type	1	1
Dimension	ABC	ABC
Reference Unit	KWH	KWH
Ledger Account	5900	5020

Allocation Type	Quantity
Quantity	10.1
Valuated Portion	variable
Cost Category	4711/No cost category

Calculation

With cost category 4711, the allocation costs are calculated by adding the amounts of ledger accounts 5800 and 5820. This is because they are present within the entered cost category:

(4,000 + 400) / 100.0 * 10.0 = 440.00

Without cost category 4711, the amounts of L/A 5800, 5820 and 5830 will be taken into account. Secondary credit ledger accounts are always skipped. Finally, the calculated sum is divided by the total performance quantity, and then multiplied by the quantity:

(4,000 + 400 + 10,000) / 100.0 * 10.0 = 1,440.00