This documentation supports the 21.05 version of BMC Helix ITSM. To view an earlier version, select the version from the Product version menu.

Configuring cost centers

Cost centers are used to identify which business units to charge costs to. Cost centers can be configured as a hierarchy to allow for cost allocation or the splitting of costs within cost centers. The cost center hierarchy is a source and target relationship (similar to a parent-child relationship where the source is the parent and the target is the child) between cost centers. The target and source relationship defines how the cost for the source cost center is split or allocated to the target cost centers. A source cost center with target cost centers is called a split cost center.


Allocation methods

The source and target cost center relationship is limited to one level. A cost center can be either a source or a target cost center, but not both. You can optionally specify target cost centers for source cost centers, depending on the allocation method.

Read through the following guidelines before you create the source and the target cost centers:

  • You cannot use the default cost center (Unallocated) as a target cost center.
  • You cannot use obsolete cost centers as source cost centers or target cost centers.
  • A target cost center can belong to only one source cost center.
  • A source cost center cannot be used as a target cost center. For example, a source center cannot be its own target cost center.

You must specify one of the following allocation methods for source cost centers:

Allocation methodsDescription
None

This is the default allocation method.

No allocation is needed, so no target cost centers are defined.

Equal DistributionCosts are equally distributed among the target cost centers. You do not specify the distribution percentage for the target cost centers.
User-Defined Percentage

You must specify the distribution percentage for each target cost center.

The total distribution percentage among the target cost centers is not required to be 100 percent, but cannot exceed 100 percent.

You can add target cost centers only after selecting the equal distribution or user-defined percentage allocation method. The allocation value is determined by a percentage from the source cost center. The percentage is stored in the Distribution Percentage field on the Cost Center form for a target cost center.

When the allocation method is Equal Distribution, the Distribution Percentage of the target cost centers is divided equally, based on 100 percent. Distribution percentages are recalculated when a target cost center is added or removed only if the source cost center and the target cost center have a status of Active.

For the allocation method of Equal Distribution, the Distribution Percentage is dividing 100 by the number of active target cost centers related to the active source cost center.


To add cost centers

  1. From the Application Administration Console, click the Custom Configuration tab.
  2. From the Application Settings list, select Foundation > Costing > Cost Center, and then click Open.
  3. On the Cost Center form, click New in a browser.
  4. Select the company for which you want to add the cost center.
  5. In the Cost Center Code field, enter a unique cost center code, such as SPLT-8200 for a split cost center, ENG-2000 for an engineering cost center, or MRT-3000 for a marketing cost center.
    This entry is added to lists for cost center fields.
  6. Select a Status.
  7. (Optional) Enter a cost center name and a description.
  8. (Optional) Enter the cost center owner or press Enter to search for an owner.

  9. Click Save.


To add target cost centers

Important

You cannot modify cost centers that have a status of Obsolete.

  1. From the Application Administration Console, click the Custom Configuration tab.
  2. From the Application Settings list, select Foundation > Costing > Cost Center, and then click Open.
  3. From the list, select the source cost center to which to add target cost centers.
  4. In the Allocation Method field, select Equal Distribution or User-Defined Percentage.
  5. Click Add.
  6. On the Searching For Cost Centers dialog box, select search criteria, and then click Search.
  7. Select the target cost centers, and then click Return Selected.
  8. Click Save.
  9. If you have selected the User-Defined Percentage allocation method, you must specify the percentage for each target cost center:
    1. Select a target cost center and then click View.
    2. In the Distribution Percentage column of the Target Cost Centers table, enter the distribution percentage for the selected target cost center and then click Save.


To remove relationship between cost centers

To remove the relationship between cost centers, select the target cost center in the Target Cost Centers table, and then click Remove.

When you remove the relationship between the source cost center and the target cost center, the existing target cost center becomes a source cost center. You can then add this cost center as a target cost center for another source cost center.


To delete cost centers

You can delete only those cost centers with the status Proposed. You cannot delete the default cost center, Unallocated.

Select one of the procedures mentioned below depending on your goal.

GoalAction
To delete a cost center with status Proposed.

From the Results list, select the required cost center, and then click Delete.

To disable a cost center permanently.

Open the Cost Center form and from the Status list, select Obsolete.

Important: After you move the status of the cost center to Obsolete, you cannot enable the cost center again.

To disable a cost center temporarily.

Open the Cost Center form and from the Status list, select Inactive.

You can enable the cost center again by selecting Active from the drop-down for Status.


To create a cost category

The costing feature of BMC Helix ITSM enables your organization to track costs and to understand the financial impact of change requests on expenses. You use cost categorization to create categories. For the Asset Management application, this task adds custom cost types and classes to the lists for corresponding fields in Cost records and the cost table on the Financials tab. For the other BMC Helix ITSM applications, this task adds cost types to the lists for corresponding fields in costs records and the cost table. The unique cost category and cost type combinations that you define by using this task are available to their respective applications when the costs are created.

  1. From the Application Administration Console, click the Custom Configuration tab.
  2. From the Application Settings list, select Foundation > Costing > Cost Category, and then click Open.
  3. Click the New button in a browser to create a cost category.

    Tip

    You can also create a cost category by modifying an existing one. First enter your search criteria in the Configure Cost Categorization form and click Search. Select the cost category that you want to modify to create the new category.

  4. In the Company field, select a company, or select Global to apply the cost category to all companies.
  5. In the Cost Category field, enter the custom cost category that you want to add.
  6. In the Cost Type field, enter or select a type for the cost category.
  7. In the Cost Type Key field, enter the cost type key.
    The Cost Type Key field is the system name for the cost type and should not be changed. The Cost Type value can change based on different languages, but the value in the Cost Type Key field should remain the same, because workflow uses the key values rather than the display values.

  8. Select a status for the cost category and type.
  9. In the Cost Class field, select a class of the cost category.
    This field is used only by the BMC Helix ITSM: Asset Management application.

    • Lease generates a cost entry from a lease contract, if assets or components are related to the contract.
    • Maintenance generates a cost entry from a maintenance contract, if assets or components are related to the contract.
    • Purchase Price determines whether the depreciation cost is used in charge-back for the cost entry of this cost class.
    • Software License generates a cost entry from a software lease contract, if assets or components are related to the contract.
    • Support generates a cost entry from a support contract, if assets or components are related to the contract.
    • Warranty generates a cost entry from a warranty contract, if assets or components are related to the contract.
    • Other specifies that no cost entry is created.
  10. In the Cost Description field, enter a description for the cost category and the cost type.
  11. Click Save.


To define cost rates by assignee group

  1. From the Application Administration Console, click the Custom Configuration tab.
  2. From the Application Settings list, select Foundation > Costing > Cost Rate Template, and then click Open
  3. To create a cost rate template, click the New button in a browser. 
  4. In the Company field, select a company, or select Global to apply the cost rate template to all companies. 
  5. Select the required unit rate, unit type, and status.
  6. Optionally, enter the percentage overhead and a description for the cost rate template.
    Overhead is the additional cost above the standard cost rate. The percentage that you specify is added to the cost that is charged.

  7. In the Define By field, select Assignee Group
  8. Select the support organization for the cost rate template. 
  9. Select the assigned group. 
  10. To specify the categorization:
    1. Select the Region.
    2. (Optional) Select the site group and site.
  11. Click Save, and then click Close.


To define cost rates by category

  1. From the Application Administration Console, click the Custom Configuration tab.
  2. From the Application Settings list, select Foundation > Costing > Cost Rate, and then click Open.


  3. To create a cost rate template, click New in a browser.
  4. In the Company field, select a company, or select Global to apply the cost rate template to all companies.
  5. Select the required Unit Rate, Unit Type, and Status.
  6. (Optional) Enter the percentage overhead and a description for the cost rate template.

    The overhead is the additional cost above the standard cost rate. The percentage that you specify is added to the cost that is charged.
  7. In the Define By field, select Product Category or Operational Category.
  8. Select the application for the cost rate template.
  9. To specify the categorization, select the product or operational tiers for this cost rate.
  10. Click Save, and then click Close.


To configure charge-back time periods

Charge-back time periods are used to specify the time period for charge-back of asset costs to cost centers or business organizations. Past time periods cannot be changed.

  1. From the Application Administration Console, click the Custom Configuration tab.
  2. From the Application Settings list, select Foundation > Charge Back > Chargeback Periods, and then click Open.
  3. On the Configure Charge-back Time Periods form, to create a charge-back period, click New in a browser.
  4. In the Company field, select a company.
  5. In the Time Period Type field, select a time period or Manual.
  6. If you selected Manual, specify the dates in the Period Start Date and Period End Date fields.
  7. Click Save, and then click Close.

Tip

When you first install BMC Helix ITSM, you can use this procedure to configure charge-back periods that match your organization's quarterly schedule. For example, if you install BMC Helix ITSM in the middle of April and your organization's quarter runs from February to April, you can set BMC Helix ITSM to match that quarterly schedule. First, set the Time Period Type field to Manual and enter an end date that coincides with the end of your organization's current quarter. After that time period is over, close the current period, and then open a new period that is set to Quarterly. Do this only when you first set up charge-back periods at your organization.


To create finance rules that automatically calculate costs

Finance rules specify which cost centers should be used for automatic costs and the method used for automatically calculating costs.

  1. From the Application Administration Console, click the Custom Configuration tab.
  2. From the Application Settings list, select Foundation > Costing > Finance Rules, and then click Open.

  3. Click New in a browser to create a finance rule.

    Tip

    You can also create a finance rule from an existing rule. First, click the search icon in the toolbar. Then, enter any search criteria and click Search. Select a finance rule on which to base the new finance rule.

  4. In the Company field, select a company, or select Global to apply the finance rule to all companies.
  5. In the Cost Category field, select a cost category for the finance rule. For example, select Training.
  6. In the Cost Rate Template Use field, select whether to use product categories, organizational categories, or groups to match costs. For example, select Calbro Software.
  7. In the Actual Cost Calculated By field, select one of the following items:
    • Time in WIP adds the actual effort cost log entries to calculate the actual cost.
    • Start-Stop Clock uses the value from the start/stop total time.
    • Manually Entered uses the value that is manually entered on the Finance tab of BMC Helix ITSM forms.
  8. Select a status and modify the description for the finance rule.
  9. (Optional) Select a cost center code for the finance rule.
  10. Click Save.
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