How to Process Chargebacks › Chargeback Rules

Chargeback Rules

Rules drive chargebacks and credits for investment and service costs and WIP transactions process them. During transaction processing, use these rules to apply charges or credits appropriately to designated departments or GL accounts.

Department managers can view their charges and credits using the following tools:

• Department invoices to view and approve charges.
• Department recovery statements to view credits. The statements are available for departments that manage services.

The following chargeback rules are supported:

• Investment-specific Debit Rules. A set of investment-specific rules that determines how to debit departments for the cost of investments or services delivered to them during a specified period. If some costs are charged to overhead, allocations cannot always equal 100 percent. Investment or service managers set up debit rules. On the Chargebacks page for an investment or service, you can view a list of any debit rules defined for the investment or service.
• Standard Debit Rules. A standard set of debit rules that can be used globally within an entity to charge departments for investment costs. Debit rules are investment-specific and are setup by the investment or service manager or the finance manager.
• Credit Rules. A set of rules that determines which departments are credited for the cost of investments or services delivered during a specified period. Allocations on credit rules must equal 100 percent of the debited costs. The finance manager sets up credit rules.
• Overhead Rules. A standard set of rules that determines how to charge remaining or overhead costs for a specified period. The finance manager sets up overhead rules.

When setting up debit rules, as the investment manager or service manager, you can base charges on standard rules or investment-specific rules.

You can configure the unique codes—Allocation Code (for standard rules) and Resource Credit Code (for credit rules)—to auto-populate.

More information:

Standard Rules

Credit Rules

Overhead Rules