Using cost objects and cost components

Infor LN allows you to categorize the cost objects into logical groups that can be used for analytical purposes. The two ways are:

• Grouping the cost objects of the same type by control code.
• Grouping the cost objects of any type by cost component.

Using control codes

For analytical purposes, you can group the cost objects of the same type using a common parent cost object referred to as the control code.

A cost object can be used as a control code.

For example, you can create a material cost object called Plastering which can be defines as the control code for all plastering related material. When maintaining the element or activity budget, you can specify the control code for every budget line that contains plastering related material. You can use the Generate Budget Cost Analysis (tpptc3200m000) session to generate reports that display the budgeted costs and quantities.

Using cost components

For analytical purposes, you can group the cost objects of any cost type using a common cost component code and use the data.

For example, you can create a cost component called Plumbing, and specify that cost component for every budget line which contains plumbing-related materials, labor, equipment, subcontracting or sundry costs.

When a cost object is created in Project cost object , you can assign the cost object to a cost component. However, when you want to specify the cost object for a budget line of an actual budget (Planning ), you can assign the cost object to a different cost component.

Based on the cost control levels defined in the Project Parameters (tppdm0100s000) session, assigning a cost component to a cost object can be mandatory.

You can analyze the actual budget using the Generate Budget Cost Analysis (tpptc3200m000) session, and print the reports by cost component.

When the revenue codes are defined, you can assign a cost component to a revenue code, which helps you to analyze the invoiced amounts by cost component.