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**Setting up Cost Types

To use APM’s costing function, you must first set up cost types. Cost types are required to collect costs throughout the system.
All costs entered through transactions in APM will be distributed to cost types except for costs charged for non-catalog purchases. For example, if a purchase order is used to buy an employee a new desktop PC (a resource that is not in the catalog) and the buyer selects the specific whole account to charge for the purchase, that cost will not appear in a cost type. Cost types should detail only maintenance-related charges. In addition, any cost that is currently in the RNI account will not appear in a cost type until the final transaction is entered.

Cost Type Hierarchy

You can enter a hierarchy of cost types to which you charge the costs of transactions in the system. If you are using GL account numbers in APM that match the accounting department's general ledger, you should create at least one cost type for each account. If you are using simplified GL account numbers, you can create the hierarchy to the level of detail needed by the maintenance department.
The cost type hierarchy usually includes a level for each of the four resource types (trades, materials, services, and tools), plus a level for miscellaneous expenses. In addition, you can provide a further breakdown to collect the detailed information you want. For example, you can include cost types for regular and overtime labor below the labor entry.
You can only charge costs directly to the lowest-level cost types. If you have regular and overtime labor below trades, you must choose one of those two categories for all labor costs; you cannot charge directly to the labor entry.
The following is an example of a cost type hierarchy:
In order to view accurate cost summaries on views such as the Costs view on the Work Order window you must:
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Set a top cost type for the enterprise
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Add summary cost types to the cost type hierarchy
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Set the total cost types for each site (in the site’s Accounting Settings dialog)
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Ensure that all cost type children are correctly located in the cost type hierarchy (for example, the Regular Labor cost type should be a child of the Labor cost type).
Tip: If you will be setting different cost types for each site, you might want to create a summary cost type for each site in the cost type hierarchy. This will help you to organize your site-based cost types in the hierarchy, and might make it easier to view cost type summaries. For example:

To Set up Cost Types

1.
From the Site window, click on the tool bar. The Enterprise window appears.
2.
Select the Accounting view, Cost Types tab, and then the Hierarchy tab. This tab shows the existing cost types hierarchy.
3.
If no hierarchy is shown, you need to select the top cost type. Click Change. The Change Top Cost Type dialog appears.
Note: Only cost types that already have a child cost type are available for selection. If you are starting from the Install database, you must first add a child cost type to the Default Cost Type. You can do this on the Cost Types tab, Listing tab: click New, and then select Default Cost Type as the Parent cost type. Then, you can use the Default Cost Type as your top cost type. You may change the name of this cost type (for example to “All costs”) by double-clicking it.
4.
A cost type should be added in the hierarchy for each of the total (summary) cost types. If you need more detail, you can add child cost types within each summary cost type.
To add a new cost type right-click a cost type in the hierarchy, and select New Child or New Peer. The Cost Type dialog appears.
5.
On the General tab, enter the following settings:
Setting Name
Description
Cost type
The name of the cost type. You can enter up to 50 characters.
If this box is left blank, an error message will appear.
Parent cost type
The cost type that is the parent of this cost type in the hierarchy.
Costs can be charged only to the cost types at the lowest level in the hierarchy (that is, cost types with no children). You cannot charge costs to parent cost types. Parent cost types will contain the costs charged to their child cost types.
GL account segment
The GL account segment used for this cost type. APM uses this information to derive the full GL account when resources are charged to this cost type.
For example, when material is issued to a work order, the GL account that appears on the transaction can be derived, depending on your settings, by joining the GL account segment from the cost type with the GL account segment from the asset to charge.
Description
Enter a long description of the cost type. You can enter up to 899 characters.
6.
On the Usage tab, enter the following settings:
Setting Name
Description
Types of resources and transactions that this cost typecan be used with
For each type of resource or transaction, select whether this cost type is Available for use, Not available, or Available for use with warning:
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Materials: material purchases or stores issues
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Trades: time cards
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Services: outside or contract labor
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Tools: equipment purchases, rentals, or repairs
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Miscellaneous expenses: miscellaneous maintenance costs (for example, maintenance cost adjustments)
If you select ‘Available for use with warning’ for any option, you must enter an appropriate warning message in the Warning message box.
Note: In order to use miscellaneous maintenance cost transactions, you must create at least one cost type that is available for Miscellaneous expenses.
Warning message
If this cost type is available for use with a warning message, you can enter an appropriate warning in this box. You can enter up to 255 characters.
This warning is displayed whenever a user selects this cost type for the selected expense type.
7.
On the Policies tab, enter the following settings:
Setting Name
Description
May be used with
For each cost type, select whether it can be used for capital or expensed costs:
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Expensed or capitalized: All costs can be charged to the cost type.
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Expensed: Includes costs for operational-type projects and all work order and transaction costs not related to projects.
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Capitalized: Includes costs on capital-type projects only.
The system will take into account the capital/expensed type of the charge, and then filter the list of available cost types on requisition lines (resource demands), purchase orders and resource transactions.
Asset cost dashboards
If you do not want this cost type to be displayed on dashboards showing asset costs, select the Not included on dashboards option.
8.
Click OK to save the cost type and close the Cost Type dialog.
9.
Repeat steps 4 to 8 for all of cost types that you need to enter.
10.
When you have entered your enterprise’s cost types, you will need to set the total cost types for each type of expense in the accounting settings for each site.
For more information, see **Setting Cost Types for a Site.