Maintain Cost Centre Definition {FCSO-1}

The cost centre is the "highest" level of the GL-Allocation and as such it will have a critical influence on reporting. Therefore, defining cost centres and setting up the consolidation rules or structures require thorough planning beforehand. It is recommended that the responsibility for creating cost centres be delegated to one person within the institution.

Whilst the consolidation structures are not limited by the system, the user should bear in mind that an over-complication of these structures will result in extensive maintenance and an unnecessary load on computer resources. Furthermore, the user should take cognisance of the fact that two other structures, namely "Departments" and "Fund Groups", are indirectly maintained and therefore available. An example of a structure is attached as Example.

Fields in the option:

Panelbox: Detail Cost Centre

Field	Type & Length	Description
Cost Centre Code	A4 (A6 for UK clients)	A unique code of this cost centre. Whilst there is no intelligence in the code, the user could build some structure into the code, resulting in ease of use and reporting.
Cost Centre Name	A40	Supply the description of the cost centre. The first 20 characters will default to the "short name" which will be used for reports and on screens.
Short Name	A20	The first 20 characters of the above name will default to this field, but may be altered by the user if not satisfied with the default name.
Type of Cost Centre	A1	Is this a (C)onsolidation or a (D)etail cost centre? Transactions will only be allowed against (D)etail centres, (C)onsolidation cost centres being used only for grouping of cost centres for various reporting purposes. A consolidation cost centre can be changed to a detail cost centre, but the reversal thereof is not possible.
The fields described below are only applicable to (D)etail Cost Centers.
Fund Group	N4	Indicate to which fund group, as specified under option {FCSC-6} (Report {FCSCR1-5}), this cost centre belongs to. In other words, what is the primary source of funding for this Cost Centre.
Department Code	N4	Indicate which Department as specified under option {GCS-4} is responsible for this cost centre. The system will report the transactions and balances for this cost centre within the report for the linked department, if requested, and it will also control that this department is authorised to place orders against this cost centre.
Host Cost Centre	A4 (A6 for UK clients)	Indicate to which cost centre the Revenue and Expense or Mandatory Transfer for the above cost centre should be transferred during execution of the year-end program {FGLM-7}. The system will display the description of the host cost centre. The host cost centre must be linked to the same general ledger code as the above cost centre. Depending on the value of the Fund Group, the system will default to the following: If the Fund Group code starts with a 2, 3, 4 or 5, the system will default its own value in this field. If the Fund Group code starts with a 1, the system will default this field to a blank. On <COMMIT> the system will validate that fund group of the cost centre and the host cost centre is the same. If not, the system will respond with: "Fund Group not the same - will result in inter-fund transfer".
Vat Registration Code	A2	Enter the VAT registration code for this cost centre. The registration codes and detail are maintained in option {FCSC-2}. The system will display the number allocated by the Receiver of Revenue and the VAT GLA's.
Vat Code	A2	Enter the VAT rate code, which is "normally" applicable to this cost centre. The VAT rate codes, percentages and apportionment percentages are maintained in option {FCSC-1}. The system will display the percentage and the apportionment percentage.

Example:

Panelbox: Additional Information

Field	Type & Length	Description
Accumulated Fund Account	A8	Should the income and expense balance of the cost centre not be transferred to the default accumulated funds account as defined in {FCSM-1b1} with the GL year-end the user can define the accumulated funds account to be used on the cost centre. The account entered, is the account number to which the accumulative balance (balance of all accounts before the transfer account) will be transferred if the default Accumulated Funds Account should not be used. The Account Category of this account must be between 700 and 709. The year-end program will validate that the account is linked to an account category between 700 and 709. The transfer account is not required and if null the default accumulated funds account as defined in FCSM-1b1 will be used.
Debtor Account Type	A4	Supply the Account Type for the sub-system Debtor if applicable for this Cost Centre. The Account Type name will default into the description field. A <LIST> of Account Types, as defined on menu option {FCSC-21} for the sub-system Debtor, is available.
Creditor Account Type	A4	Supply the Account Type for the sub-system Creditor if applicable for this Cost Centre. The Account Type name will default into the description field. A <LIST> of Account Types, as defined on menu option {FCSC-21} for the sub-system Creditor, is available.
Contact Person	A1	Indicate the type of contact person for the receipt of Ledger reports. The valid value for this field is (P)ersonnel. On entering (P)ersonnel, supply the applicable number (N9) in the next field. Labels, letters etc., for recipients of Ledger reports are printed on menu option {FGLCOR1-1}.
Campus	N2	Campus Code is used to link the Cost Centre to a Campus and will be used to generate Cost reports per campus. Currently no standard reports are using the above code. Campus Code is created with option {SPCS-1}.
Category	A4	Cost Centre Categories are defined in the menu option {FCSC-9} "Maintain Cost Centre Categories". Cost Centre Categories are used for reporting purposes but reporting is limited to Views and Summaries in specific the view "M16 - GL and Commitments".

Example:

Panelbox: Program Percentages Per Cost Centre

Field	Type & Length	Description
Cost Centre	A4, A6 for UK clients	Defaults Detail Cost Centre Panelbox.
Program	N2, N2, N1	The program is entered in three fields, i.e. the main programme (1 to 13), the sub-programme (for all programmes except 2 and 3), and the sub-sub-programme (only for sub-programmes 5.2 and 6.4). In cases where there are no sub- or sub-sub-programmes, zeroes must be entered. The name of the (sub-)(sub-)programme will be displayed once the complete code has been entered.
Percentage	N5.1	Percentage of the expenses to be allocated to each programme. The percentages should add up to 100%.

Example:

Panelbox: CESM Percentages for Programs 1.1 and 2.0

Field	Type & Length	Description
Cost Centre	A4, A6 for UK clients	Defaults from Detail Cost Centre Panelbox.
Program	N2, N2, N1	The program is entered in three fields, i.e. the main programme (1 to 13), the sub-programme (for all programmes except 2 and 3), and the sub-sub-programme (only for sub-programmes 5.2 and 6.4). In cases where there are no sub- or sub-sub-programmes, zeroes must be entered. The name of the (sub-)(sub-)programme will be displayed once the complete code has been entered.
CESM	N2	This value can be between 1 and 22.
Percentages	N5.1	Percentage of the expenses to be allocated to each programme. The percentages should add up to 100%.

Example:

Maintain Cosolidation Cost Centre & Major Allocations buttons:

Under the following two Blocks the user can link/unlink cost centres in a hierarchy, for example, all cost centres representing departments within one faculty can be linked to the cost centre which represents the faculty. This can be done on a global basis or on an individual basis. The system will control that the cost centre to which the linking is done is a (C)onsolidation cost centre, but a consolidation cost centre can be linked to a "higher" consolidation cost centre. Before structures can be created here, the Consolidation Cost Centre, to which other Cost Centres are to be linked, must first be queried on block 1. This does not apply should the User only want to view existing structures.

In Block 2 the user can enter the cost centre code and the system will display the following:

Description of cost centre
Is this a (C)onsolidation. (D)etail cost centres are not allowed here
Number of cost centres consolidating into this cost centre.

The system will then prompt the user with, "Do you want to do major consolidations? (Y)es or (N)o". The user can do one of the following:

If the answer is (N)o the user can do single consolidations in the next Block after <NEXT BLOCK> command:

the system will display the primary cost centre from Block 2
enter the code of the cost centre to be consolidated
system displays if this cost centre is (C)onsolidation or (D)etail cost centre
system displays if this cost centre is (A)ctive or (N)on-active
If the specified cost centre is already consolidated to this cost centre, the system will respond with:

"This consolidation already exists, cannot consolidate again"

If the answer is (Y)es the system will offer a menu of choices for multiple consolidations. The menu prompts the user as follows:

Supply the primary cost centre code (Q = Quit):

An existing (C)onsolidation cost centre code should be entered, and if not the system will display: "Illegal cost centre or not a consolidation cost centre", and another chance will be offered to enter the correct code. When a valid code is entered, the system will offer the following choices:

Cost Centres From => To:

If this option is selected, the system will request the start and end cost centre. If an existing consolidated cost centre is specified, the system will execute the request but the same consolidation will not be created more than once.

Masked Cost Centres:

If this option is selected, the system will request: Supply the mask to be used (e.g. 4 9 ) (x = exit):

The above example means that all cost centres with a 4 in the first digit and a 9 in the 3rd digit will be used for consolidation. Note should be taken that this facility offers a powerful method of consolidation if the user has numbered his cost centres in blocks. The same controls will be done and error messages displayed.

To delete a consolidation or "unlink" one cost centre from another, the user can enter the consolidation cost centre in Block 2. Go to Block 3. Query the consolidated cost centres. Line up the cursor to the cost centre to be deleted. Issue <DELETE RECORD> command, and <COMMIT> the change.

WARNING: Users should take care before changing the status of a cost centre from a consolidation cost centre to a detail cost centre or vice versa. The critical concept is that transactions are carried only on a detail cost centre.

Changing a (C)onsolidation cost centre to a (D)etail cost centre is allowed and the user should understand that no transactions before the date of change will be available. The system will not allow a (D)etail cost centre to be changed to a (C)onsolidation cost centre, until all the transactions of the cost centre have aged beyond the period specified for retaining of transactions and the transactions have been removed.

Panelbox: Consolidation Cost Centre

Field	Type & Lenght	Description
Type of Cost Centre	A1	Is this a (C)onsolidation or a (D)etail cost centre? Transactions will only be allowed against (D)etail centres, (C)onsolidation cost centres being used only for grouping of cost centres for various reporting purposes. A consolidation cost centre can be changed to a detail cost centre, but the reversal thereof is not possible.
Cost Centre Code	A4 (A6 for UK Clients)	A unique code of this cost centre. Whilst there is no intelligence in the code, the user could build some structure into the code, resulting in ease of use and reporting.
Cost Centre Name	A40	Supply the description of the cost centre. The first 20 characters will default to the "short name" which will be used for reports and on screens.
Short Name	A20	The first 20 characters of the above name will default to this field, but may be altered by the user if not satisfied with the default name.
General Ledger Code	A2	The "ledger" to which this cost centre belongs as defined in option {FCSC-3}. The system will display the description and year-end cycle of the specified ledger. The ledgers are defined in option {FCSC-3}, and the value of the (P)rimary ledger will default into this field. The field is protected against update. Create a new cost centre if a "ledger" must be changed, and transfer the old cost centre data to the new cost centre by journal. This will ensure stable reporting. On <COMMIT>, the system will validate that the year-end of the cost centre and host cost centre is the same. If not, the system will respond with: "CC and host CC must belong to same ledger".
Host Cost Centre	A4 (A6 for UK Clients)	Indicate to which cost centre the Revenue and Expense or Mandatory Transfer for the above cost centre should be transferred during execution of the year-end program {FGLM-7}. The system will display the description of the host cost centre. The host cost centre must be linked to the same general ledger code as the above cost centre. Depending on the value of the Fund Group, the system will default to the following: If the Fund Group code starts with a 2, 3, 4 or 5, the system will default its own value in this field. If the Fund Group code starts with a 1, the system will default this field to a blank. On <COMMIT> the system will validate that fund group of the cost centre and the host cost centre is the same. If not, the system will respond with: "Fund Group not the same - will result in inter-fund transfer".
Contact Person	A1	Indicate the type of contact person for the receipt of Ledger reports. The valid value for this field is (P)ersonnel. On entering (P)ersonnel, supply the applicable number (N9) in the next field. Labels, letters etc., for recipients of Ledger reports are printed on menu option {FGLCOR1-1}.
Person Number	N4	It indicates the Person Number
Campus	N2	Campus Code is used to link the Cost Centre to a Campus and will be used to generate Cost reports per campus. Currently no standard reports are using the above code. Campus Code is created with option {SPCS-1}
Type of Budget Control on CC	A1	Display field only. Is this cost centre (A)ctive or (N)on-active? Will only display (N)on-active if all the Accounts linked to the above cost centre are (N)on-active. A consolidation cost centre cannot be set to non-active. The system will treat the Consolidation Cost Centre as active except for option "Delete Cost Centre" {FCSMN-9}, which will treat it as Non-active. No transactions will be allowed against non-active cost centres.
Budget C/F	A1	The Period or Year End Close of Procurement Management System will apply this rule for the carrying forward of available funds between financial years (for more detail see {FPM M-11}). The value defaults from the System Operation Definition, menu option {FCSM-1}, and the allowed values are: (C)ash basis - the total unexpended budget is carried forward (B)udget basis - only an amount equal to the outstanding commitment is carried forward (N)one - no unexpended moneys are carried forward. This option is also dependent on the "Budget Control" indicators in the sense that the calculation of the outstanding amount will be at GLA level or Account Category level. The system will apply the following rules: If the budget control indicators on the cost centre and account are set to (A)ccount/Account Category and (A)ccount respectively, the balance will be calculated at GLA-level and the amount carried forward will be posted to the same GLA in the new year If the budget control indicators on the cost centre and account are set to (A)ccount/Account Category and Account (C)ategory respectively, the balance will be calculated at Account Category level and the amount carried forward will be posted to the first GLA found in the specific category in the new year.
Include in STATS	A1	Indicate if cost centre must be included in STATS reporting system (Y)es/(N)o.

Example(s):

Example: Cost Centre Consolidation Structure

Processing Rules
	No special processing rules

Date	System Version	By Whom	Job	Description
25-Sep-2006	v01.0.0.0	Charlene van der Schyff	t133469	New manual format.
10-May-2006	v01.0.0.0	Amanda Nell	t133469	Adding Example
08-Dec-2008	v01.0.0.0	Marchand Hildebrand	t152121	Manual Corrections
22-Oct-2009	v02.0,0.0	Marchand Hildebrand	t161514	Add Coset Centre Categories
23-Jan-2019	v04.1.0.0	Tshidiso Dennis Koetle	T227042	Update Manual to 4.1