Define Cost Center Model for Fixed/Variable Budget

The purpose of this procedure is to define a cost model. A cost model is a template, an umbrella term for a group of pre-defined lines. These lines determine the type of costs to be monitored and to be accounted for in ‘Cost Center Analysis. Display’ (CAS200).

The model consists of the following line types:

  • Detailed, which retrieve values from actual outcome or budget
  • Calculation line for manual calculation
  • Calculation line per resource driver divides the cost in the column by a resource (for example, hours) into fixed and variable portions.
  • Text line (can be used as a heading line, with a maximum of 15 characters)
  • Line to display certain values for a particular resource driver.

The model is automatically updated using values in the general ledger.

Before you start

  • Cost centers are defined in ‘Accounting Identity. Open’ (CRS630)
  • The accounting dimension reserved for cost centers is defined in the ‘Accounting dimension for cost center’ field in ‘Settings - Cost Accounting’ (CAS900/G)
  • The ‘Search path – variable percentage’ field in (CAS900/G) indicates from where the variable portion of a fixed/variable is retrieved.

Follow these steps

  1. Start ‘Cost Center Model. Open’ (CAS050/B).

  2. Enter an ID. Click New.

  3. On the E panel, enter a description and specify how the line values should be rounded off and how many decimals to use for line types 1 and 2 and line type 3 respectively.

  4. If you wish to restrict access to the model, enter an object access group.

  5. If the values are to be retrieved from a budget instead of the actual outcome, enter a budget number and version. Enter a resource driver unit and select unit type. Press Enter.

  6. In ‘Cost Center Model. Open Lines’ (CAS051/B), set the panel sequence to E12.

  7. Create a line by entering a line number and click New.

  8. In (CAS051/E), enter a description/name, select line type (required). For line type 5, enter a resource driver as well. Press Enter.

  9. Select one of the following alternatives:

    • For line type 1, go to step 10
    • For line type 2, go to step 12.

  10. If you selected line type 1, ‘Cost Center Model. Enter Line Info’ (CAS052/B) is now displayed. Enter an ID for a range of cost centers. Click New.

  11. In (CAS052/E), enter From and To accounts respectively to complete the cost model. Press Enter.

  12. If you selected line type 2, ‘Cost Center Model. Define Line Calculation Formula’ (CAS053/B) is now displayed. Select operator (+, -, /, *) and the IDs of existing lines to be included in the calculation. Press Enter.

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