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Static Data

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The Static Data tab is used to add new Cost Centres and maintain basic data relating to such Cost Centres. Direct types Cost Centre, add needs to be performed as follows.  Add the Cost Centre as an Indirect Cost Centre type first.  Define the applicable Cost Centre accounts via the account maintenance functionality on the Accounts screen.  Once this has been done, change the Cost Centre type to Direct, which will require the selection of production and project management recovery accounts for labour and overhead costs.

 

On this tab the following fields can be viewed:

 

hmtoggle_plus1Add

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

 

The Add button is enabled when a new Cost Centre code is entered.

 

When the Add button is clicked, the Cost Centre code, Cost Centre description, Division code, Cost Centre type "D" or "I", Cost Centre time sheet approval "1" or "0",  Cost Centre manager, parent Cost Centre, production labour account, production overhead account, project management labour account, project management overhead account, fixed overhead account, project management fixed overhead account, is inserted in the Cost Centre table.

 

BUSINESS RULES WHEN ADDING:

 

1.        The Cost Centre code must not be empty.

2.        The Cost Centre description cannot be less than 3 characters.

3.        The Cost Centre must be Direct "D" or Indirect "I".

4.        The parent Cost Centre cannot be the same as the Cost Centre.

5.        The Cost Centre manager must be an active employee.

6.        The Division must exist.

7.        The parent Cost Centre must exist.

hmtoggle_plus1Allow Rescheduling Of Approved Labour Budgets

This setting pertains to the Node Structure Overview function when a node is rescheduled.  When a project scheduler changes the start and/or end date of a node, it may be that labour budgets exist against Cost Centres which were already approved by the Cost Centre manager.

 

Since the node moved, these budgets will also need to move.  Some Cost Centre managers may feel that, since they approved the load, those budgets can simply

move, and that they need not re-approve them again.  In this case the setting should be Yes, Leave Approved.

 

Others may feel that their ability to deliver on those approved budgets has been compromised, and they may either:

 

1.        Force Qmuzik to allow the rescheduling of the node, but unapprove the Cost Centre approved labour budgets (Yes, Unapprove), or

 

2.        They may disallow the rescheduling attempt (No).

 

If either one of the two Yes options is selected, mail will be sent to the Cost Centre manager informing him of the change.  Labour Budgets not yet approved by the Cost Centre manager will automatically be moved and are not subject to this setting.

hmtoggle_plus1Automate Timesheet Cc Approval

This setting enables the cost centre manager to specify whether he or she wants to participate in timesheet approval or not. If not, timesheets will be automatically cost centre approved.

 

This field will be defaulted from the division setting. This field will be disabled if the division settings specify enforced. If enabled the cost centre manager may set this setting to be stricter but not less.

hmtoggle_plus1Change

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

 

The Change button is enabled when an existing Cost Centre code is selected.  When the Change button is clicked, the following updates are performed:

 

 

1.  If a Cost Centre is being changed from direct to indirect, it validates that, when a work centre is linked to the Cost Centre, it is not active on any part operation where Operation Costed is Yes.

 

2.  It validates that a valid Cost Centre Manager, Production Labour Account, Production Variable Overhead Account, Production Fixed Overhead Account, Project Management Labour Account, Project Management Variable Overhead Account, and Project Management Fixed Overhead Account have been selected.

 

3.  It selects the Cost Centre type of the selected Cost Centre from the Cost Centre table.

 

4.  The fields description, Division code, Cost Centre type, Cost Centre timesheet approval, manager, and parent Cost Centre on the Cost Centre table, is updated.

 

 

BUSINESS RULES WHEN CHANGING A COST CENTRE:

 

1.        The Cost Centre code must not be empty.

2.        The Cost Centre description cannot be less than 3 characters.

3.        The Cost Centre must be Direct "D" or Indirect "I".

4.        The parent Cost Centre cannot be the same as the Cost Centre.

5.        The Cost Centre manager must be an active employee.

6.        The Division must exist.

7.        The parent Cost Centre must exist.

hmtoggle_plus1Charge Out Rate

It is the Charge Out Rate cost per hour, per Cost Centre, per financial year. It is populated from the Cost Centre Fin Year Data table.

 

A new rate can be entered in this field to change the values in the list box (rates for a financial period must first be selected).

 

This rate usually represents any costs that can be claimed when the resource is outsourced to another Cost Center.

 

It is a numeric, read only field that can have 6 digits before and 2 digits after the decimal point.

hmtoggle_plus1Cost Centre Type

Two types of Cost Centres can exist, namely, Direct (D) and Indirect (I) cost centres.  A Cost Centre can only be one of the two.

 

Direct Cost Centres

These Cost Centres are credited through real-time journals for work done on projects or in production, by their employees.

 

Direct Cost Centres therefore require labour and overhead recovery accounts to be specified on the Accounts tab.  They must have labour and overhead

rates (costs) for at least the current financial year on the Financial Costs tab.

 

Direct Cost Centres can be used in project (node) budgets and through work centres in production routings.  For production purposes, at least one work centre must be created and linked to a direct Cost Centre.

 

Indirect Cost Centres

Will receive no credits for work done by their employees on products or on Projects.  Therefore, no rates and recovery accounts are needed for indirect Cost Centres.  All expenditures for indirect Cost Centres become part of the fixed cost for your company.

 

A new Cost Centre is always added as Indirect (I) because accounts have not yet been created.  After accounts have been created for the Cost Centre, its type can be changed to Direct (D).

hmtoggle_plus1Delete

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

 

The Delete button is enabled when an existing Cost Centre code is selected.  When the Delete button is clicked, the selected Cost Centre is deleted from the Cost Centre table.

 

The delete will not be performed where:

 

1.        There are still work centres linked to this Cost Centre.

2.        There are still employees linked to this Cost Centre.

3.        There are still dependant Cost Centres linked to this Cost Centre.

4.        There are still accounts linked to this Cost Centre.

5.        There are still labour budgets linked to this Cost Centre.

hmtoggle_plus1Division

This is the Division code the Cost Centre is linked to (sometimes referred to as a business unit).

 

It is populated with the code and description from the Division table, where the code matches the code entered by the user.

 

The number of characters to be entered before the list is shown is governed by the value of populate length (mandatory).

 

If a Cost Centre's Division is changed, Interdivisional Journals are produced to Transfer balances between the divisions.

hmtoggle_plus1Fixed Overhead Rate

It is the fixed overhead cost per hour, per Cost Centre, per financial year. It is populated from the Cost Centre Fin Year Data table.

 

This rate can be used for any other costs that you want to account for.  This is sometimes referred to as "burden" costs.

 

A new rate can be entered in this field to change the values in the list box (rates for a financial period must first be selected).

 

This rate may not exceed the Overhead (Fixed) Rate Max set on the System Configuration function.

 

It is a numeric, read only field that can have 6 digits before and 2 digits after the decimal point.

hmtoggle_plus1Labour Rate

It is the labour cost per hour, per Cost Centre, per current financial year. It is populated from the Cost Centre Fin Year Data table.

 

This rate is mandatory for direct Cost Centres and optional for indirect Cost Centres.  If a rate is entered for indirect Cost Centres, it is regarded as information only and the system does not apply this rate anywhere.

 

This rate usually represents the direct costs of the billable people in the Cost Centre.  This labour rate may not exceed the Labour Rate Max set on the System Configuration function.

 

Once a new rate is entered the Change button must be clicked.

 

It is a numeric, read only field that can have 6 digits before and 2 digits after the decimal point.

hmtoggle_plus1Manager

It is the person responsible for managing the Cost Centre.  The Cost centre responsibilities may be, creating and managing the financial and manpower budgets, and managing expenditures through the approval/rejection of requisitions.

 

It is populated with the first name, surname, middle initial and the employee ID from the Employee Master table, where the status is Active (A).

 

The number of characters to be entered before the list is shown is governed by the value of populate length.

hmtoggle_plus1Node Manager Down Adjust Labour Budget

This field governs whether the Project (Node) Manager may down adjust approved labour budgets against the Cost Centre.  Approved labour budgets can be regarded as a formal labour agreement between project and line management.

 

This setting may or may not give change rights to the Project (Node) Manager.  If the option Yes, send mail is selected, the Project (Node) Manager may down

adjust labour budgets and the Cost Centre Manager will receive electronic mail informing him/her about the adjustment.

hmtoggle_plus1Parent Cost Centre

It is the Cost Centre placed organisationally above the current Cost Centre.  The Cost Centre structure should represent the departments and sections within departments for your company (i.e. line management structure).

 

It is populated with the parent Cost Centre code and description from the Cost Centre table.

 

The number of characters to be entered before the list is shown is governed by the value of populate length.

hmtoggle_plus1Participate In Timesheet Approval

This setting specifies whether the Cost Centre manager wishes to personally approve timesheets entered by employees of his/her Cost Centre.

 

When checked, timesheets entered against projects (nodes) will therefore require approval by the Cost Centre manager prior to project (node) timesheet approval by the Node manager.

 

When unchecked, timesheets entered will skip the routine of Cost Centre approval, mail will be forwarded directly to the applicable Node manager(s), and node approval will be allowed.

 

For nodes where budget checking is Yes, the setting for this field will be applied to labour budgets for the Cost Centre, as a default.  On the Cost Centre Labour Budget function, the Cost Centre manager will have the opportunity to deviate from this setting, and will even be allowed to alter the timesheet approval option for different employees and/or resources within the same budget.

 

For nodes where budget checking is No, Cost Centre approval of the labour budget does not apply, and the Cost Centre manager, can therefore not deviate from this setting. Timesheets entered against nodes without budget checking will therefore, either include or exclude the Cost Centre manager from the approval cycle as governed by this setting.

hmtoggle_plus1Total

It is the sum of the (Current Labour Rate + Current Variable Overhead Rate + Current Fixed Overhead Rate) fields for a Cost Centre.

hmtoggle_plus1Variable Overhead Rate

It is the variable overhead cost per hour, per Cost Centre, per financial year. It is populated from the Cost Centre Fin Year Data table.

 

This rate usually accounts for the non-billable employees in a direct Cost Centre (i.e. manager, secretary etc).

 

A new rate can be entered in this field to change the values in the list box (rates for a financial period must first be selected).

 

This rate usually represents the costs of indirect people in the Cost Centre and running costs of the Cost Centre.  This rate may not exceed the Overhead Variable) Rate Max set on the System Configuration function.

 

Once a new rate is entered the Change button must be clicked.

 

It is a numeric, read only field that can have 6 digits before and 2 digits after the decimal point.