Real Estate Portfolio Management / Cost Administration / Cost Wizard

Working with the Cost Wizard When Using Archibus Enhanced Global Feature Set

If you are using the Archibus Enhanced Global Feature Set, the Cost Wizard enables you to enter Base Costs as Income or Expense that the system then uses to calculate the VAT Cost Amounts and Total Costs. Because these records document cost transactions, you enter costs using the Payment Currency.

When you enter a cost transaction using the Cost Wizard, the system gets the default VAT Country and Currency associated with the Locale entered in your User Profile, although you can select a different Payment Currency if needed when adding a new cost record.

You then select a Cost Category for the cost. Your Business Process Owner records VAT percentages based on Cost Category and Country. By default, the system uses this information to determine the VAT Percent Value for the cost and to calculate the VAT using this percentage. However, to allow for VAT exceptions and exemptions, the Cost Wizard enables you to override the default VAT Percent. See Overriding the VAT Percent.

When you enter either Base Income (Payment) (for costs that are income) or Base Expense (Payment) (for costs that are expenses), the system gets the VAT Percent value and calculates the following:

For costs that are income:
- VAT Amount Income (Payment): The system calculates the amount of VAT you collect from your customers as income for this cost transaction. This is calculated as Base Amount Income (Payment) x VAT Percent Value.
- Total Amount Income (Payment): This is the total amount owed to you calculated as Base Amount Income + VAT Amount Income (Payment).
For costs that are expenses:
- VAT Amount Expense (Payment): The system calculates the amount of VAT you pay as an expense for goods and services you purchase for each cost transaction meeting the restriction you set. This is calculated as Base Amount Expense (Payment) x VAT Percent Value.
- Total Amount Expense (Payment): This is the total amount you owe calculated as Base Amount Expense (Payment) + VAT Amount Expense (Payment).

About Amount - Income and Amount - Expense

If the Archibus Enhanced Global Feature Set are not enabled, the Amount - Income and Amount - Expense document the amount you received or the amount you paid without any breakdown for any taxes that might or might not be involved in the transaction.

When the Archibus Enhanced Global Feature Set are enabled, the Amount - Expense and Amount - Income fields show Total Costs in the Budget Currency. Reports use the following equivalents for Amount Income and Amount Expense:

Amount - Income = Total Income Cost (Payment) X Budget Exchange Rate

Amount Expense = Total Expense (Payment) X Budget Exchange Rate

Excluding All Costs for a Lease from VAT Payments

If the Lease contract indicates that the tenant is exempt from paying any VAT tax for costs associated with the lease, you can set the VAT Excluded? flag for the lease to Yes. This means that the system sets the VAT Percent to 0.00 for all costs assigned to this lease, and you are not able to enter a VAT Amount Override or VAT Percent Override for a cost associated with this lease. This field is available only if you have enabled the Archibus Enhanced Global Feature Set.

You enter the VAT Excluded? field when entering lease information. See Entering Lease Information Using the Add/Edit Wizard, Add/Edit Form - Complete, and Add/Edit Form - Basic.

Overriding the VAT Percent

If the tax code provides exceptions for specific VAT taxes, an exception might appear in the lease agreement. You can then use this information in the lease agreement to enter an override to the default VAT percent for any recurring or scheduled cost record.

Note: If you have set the VAT Excluded? flag for a lease to Yes, you are not able to enter a VAT Amount Override or VAT Percent Override for any cost associated with the lease.

You can override the default VAT percentage entered for a cost category and country by entering either of the following for a cost record:

VAT Percent Override: To have the system use a different percentage to calculate VAT for this cost, use the VAT Percent Override field. If this cost is exempt from taxes, you can enter 0.00 for the VAT Percent.
VAT Amount Override: To have the system use a specific amount for the VAT, use the VAT Amount Override field.