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Financial Costs

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The Financial Cost tab is used to specify the applicable rates for labour and overhead costs which are defined per financial year for Direct type Cost Centres.  Journals that are posted against the Production Recovery accounts for labour and overhead costs, will usually apply these rates where linked work centres performed production or maintenance operations.  Work centres therefore inherit the Cost Centre rates as defined on this tab.

 

On this tab the following fields can be viewed:

 

hmtoggle_plus1Apply 1

The user must have a security profile linked to the function Cost Centre with an access allowed of Change.

 

When you change an existing rate(s) and click Apply, the fields labour rate, overhead rate, and fixed overhead rate, on the Cost Centre Fin Year Data table are updated with the rates entered, for the selected Cost Centre  and the financial year.

 

When you add a new rate(s) and Apply is clicked, the cost centre code, financial year, new labour rate, overhead rate, and fixed overhead rate is inserted in the Cost Centre Fin Year Data table.

hmtoggle_plus1Apply 2

The user must have a security profile linked to the function Cost Centre with an access allowed of Inquire. The user must be the Division manager, Division accountant, acting Division manager, or acting Division accountant.

 

When the Apply button is clicked the following updates are performed:

 

1.        It validates that the Capital Limit and Non-Capital Limit fields have a value greater than zero.

 

2.        It validates that the Capital Limit and Non-Capital Limit fields values do not exceed 999999999.99.

 

3.        It validates that the Capital Limit and Non-Capital Limit fields values are not greater than the limits of authorisation defined on the Division function.

 

4.        The fields, Limits of Authorisation Capital Goods, and Limits of Authorisation Non-Capital Goods, on the Cost Centre table are updated.

 

5.        If the old capital goods limit is not equal to the new capital goods limits, or the old non-capital goods limit is not equal to the new non-capital goods limits, mail is sent to the Cost Centre manager.

 

This mail informs the Cost Centre manager what the new amount for capital goods and/or non-capital goods is and the employee who changed the limits.

 

If the new capital and/or non-capital limit exceeds the Authorisation Limit to be Exceeded Before CEO Informed on System Configuration , mail is sent to the Chief Executive Officer (CEO).

hmtoggle_plus1Capital Goods

It is a money field, specifying the authorisation limit a Cost Centre manager has on releasing requisitions on capital goods.  It is populated with the limit from the Cost Centre table.

 

The capital goods authorisation limit is applied whenever a non stock purchase order requisition, with a specified capital budget reference number is released for implementation and the requisition account is a Cost Centre account.

 

The release of the requisition will only be allowed if someone in the requisition approval cycle has a high enough capital goods authorisation limit.

hmtoggle_plus1Cost Centre Rates

It is populated with financial years, labour rate, overhead rate, fixed overhead rate, and total rate from the Cost Centre Fin Year Data table for the selected Cost Centre.

 

It displays the rates for the selected Cost Centre per financial period.

 

Previous financial year rates cannot be changed and the rates may not exceed the Overhead (Fixed) Rate Max , Overhead (Variable) Rate Max and Labour Rate Max specified on System Configuration .

 

Journals referencing the Cost Centre rates, include the following:

 

Production to Scrap Journal

Rework to Scrap Journal

Rework to Stores Journal

Production to Stores Journal

Shipping Journal For Non-Stocked or Exploded

Requirements Having Order Operations

Shipping Journal For Non-Stocked Having Exploded

Requirements With No Order Operations

hmtoggle_plus1Limit Of Authorisation

This frame contains the maximum amount a Cost Centre manager is allowed to release per requisition.  It is only enabled if the signed on user is the Division Manager or the Division Accountant of the Cost Centre's Division.

 

The Cost Centre manager will be allowed to approve a requisition exceeding the maximum amount, but he will not be able to release it.

 

These authorisation amounts cannot exceed the limits of authorisation specified on the Division function.

hmtoggle_plus1Non Capital Goods

It is a money field, specifying the authorisation limit a Cost Centre manager has on releasing requisitions on non capital goods.  It is populated with the limit from the Cost Centre table.

 

The non capital goods authorisation limit is applied whenever a requisition is released where the requisition account is a Cost Centre account, and no capital budget reference number entered if it is a non stock purchase order requisition.

 

The release of the requisition will only be allowed if someone in the requisition approval cycle has a high enough capital goods authorisation limit.