Chargebacks › How Chargebacks Work
How Chargebacks Work
Rules drive chargebacks and credits and WIP transactions process them. These rules are used during transaction processing to apply charges or credits appropriately to designated departments. 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.
- Standard Debit Rules. A standard set of debit rules that can be used globally within an entity to charge departments for investment costs.
- 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.
- Overhead Rules. A standard set of rules that determines how to charge remaining costs for a specified period.
When setting up debit rules, as the investment manager or service manager, you can base charges on standard rules or investment-specific rules.
More information:
Department Invoices
Department Recovered Costs
Set Chargeback Options
