When you document lease costs, you must select a cost category for the cost. Organizing costs by cost categories enables you to:
The default cost categories act as a starting point for developing your own cost categories. The default cost categories are:
Cost Category | Cost Class | Cost Type |
---|---|---|
RENT - BASE RENT |
RENT EXPENSE |
BASE RENT |
LEASEHOLD IMPROVEMENT |
LEASEHOLD IMPROVEMENT |
LEASEHOLD IMP. |
TAX - TAX |
TAX EXPENSE |
TAX |
TAX - CHARGEBACK |
TAX INCOME |
TAX |
Note; For the Leases module, the purpose of developing cost categories and assigning them to costs is to organize your costs. Chargeback is not supported because it requires working with actual costs, and in the Leases module you work only with recurring costs.
This topic has the following sections:
When you create a cost category, you assign it to a cost class. Cost classes enable Cost Administrators to search for costs by class when they are managing costs using the Cost Wizard, and when selecting costs to report on. Cost classes can optionally be associated with super classes, the most general level of classification of a cost. For example, you could define a class of Rent Income and associate it with the super class of Income.
When you add a cost category, you can optionally give the category a cost type that groups related costs within the category. When working in the Cost Wizard, you can select costs by cost type to show only those costs.
For example, if you assign the cost type 'Base Rent' to the 'Rent - Base Rent' cost category, you can examine all costs having the Base Rent cost type together in the Cost Wizard. This enables you to make finer distinctions, such as viewing only Base Rent cost types, and not costs classified with other Rent - Base Rent cost types, such as Rent - Other Rent.
If you associate the Tax Cost Type with a cost category, you can create tax cost projections by adding only costs with these cost tax types from the Cost Forecasting Wizard. See Cost Forecasting Wizard
The cost type value defaults to N/A, which indicates a cost with no specialized roll-up category. The default cost types provide a starting point for developing your own cost categories.
The default cost types are:
Note: The Leases cloud module does not support chargeback as it does not include the Cost Wizard.
When you define a cost category, you select a value for the "Assigned To - Rolls Up To - Prorates To" selection. This selection controls the roll-up and proration strategies for charging back costs to properties, leases, buildings, and departments. This information is used when you generate chargeback costs.
The following table describes the three components of this selection
Field Component | Description | Choices | How It Works |
---|---|---|---|
Assigned To |
Identifies the item to which the original cost must be assigned in order for the chargeback action to properly charge back the cost. This is the item (building, property, lease, or account) the cost is added for.
|
All Leases Buildings Properties.
|
If the value for this portion of the field is: All: Includes costs with any assignment (leases, buildings, properties, or accounts). It is used to directly bill, but not to charge back costs. Leases, Buildings, or Properties: When entering costs using the Cost Wizard, you select the lease, building, or property the cost is for. The Cost Wizard then presents only cost categories that match your selection; that is, cost categories that have an Assigned To value that matches the item you selected, or that have an Assigned To value of All. Note: For costs associated with accounts, you must select a cost that has an "Assigned To" value of "All". You can directly bill, but not charge back these costs. |
Rolls Up To |
Identifies the item for which a rolled up chargeback Scheduled Cost record should be created for this type of cost. This is useful for reporting on costs that you track or incur at a lower level, but want to sum up to a higher level. |
None Buildings Properties |
If the value for this portion of the field is: None: The cost does not roll up. Buildings or Properties: A Scheduled Cost record that rolls up the costs for this cost category is created for either the building or the property, depending on your selection. For instance, you might denote a maintenance cost category as rolling up a building cost to properties. You then enter your costs for maintenance for each building and assign them the same cost category that rolls up to properties. For each property, the chargeback routine will sum all maintenance costs having this cost category for all buildings assigned to the property, and then record these costs in one Scheduled Cost record assigned to the property. |
Prorates To | Identifies the item to which costs should be proportionately distributed, that is, for billing purposes to which item should this cost be charged back. |
Bill Direct Leases Buildings Departments |
If the value for this portion of the field is: Bill Direct: The chargeback action does not generate any chargeback Scheduled Cost records. This cost category is not charged back, rather it is billed directly to the item it was reported for. None: The chargeback routine generates rolled up Scheduled Cost records only. Leases, Buildings, or Departments: The chargeback routine takes the total and prorates it back to the given building, department, or lease, based on the relative area percentages of these entities, by assigning the generated Scheduled Cost records to buildings, departments, or leases. |
For examples of using each of these values, see The Nine Chargeback and Proration Definitions.
The selections available for Assigned To - Rolls Up To - Prorates To are:
Example of Charging Back to Leases
Example of Charging Back to Departments
Copyright © 1984-2020, Archibus, Inc. All rights reserved. |