Cost Breakdown Structures and Cost Codes¶
A Cost Breakdown Structure (CBS) is the chart of cost codes Credence uses for development budgeting. Cost codes categorize development spend so budgets, commitments, and invoices can be compared on the same work categories.
Definitions¶
- Cost Breakdown Structure — A named set of cost codes for your organization. You can maintain more than one structure when different audiences need different charts.
- Cost Code — A line in a CBS used to classify development budget and spend. Cost codes can be nested under parent codes within the same structure.
- Leaf Cost Code — A cost code with no children. Development budgets and development purchase-order charges use leaf codes.
How CBS Relates to Properties and Jobs¶
Assign a Cost Breakdown Structure on each property that will have development jobs.
- Jobs at that property use only the cost codes from the assigned structure.
- Development purchase orders for a job offer only cost codes from that same structure.
- Credence requires a CBS on the property before you can create a development job.
- Properties without development work do not need a CBS.
A property has one assigned CBS at a time. Changing the assignment changes which cost codes appear for jobs at that property going forward.
Empty Development Budget containers are recreated when the property CBS changes. Once any Development Budget has an adjustment, including a draft or rejected adjustment, Credence blocks changing or clearing the property's CBS. Existing cost-code budgets and vendor charges can also block a change when they use codes outside the proposed CBS.
Managing Cost Codes¶
Within a Cost Breakdown Structure you can:
- Add, edit, and nest cost codes
- Activate or deactivate individual cost codes
- Download the structure for review outside Credence
Parent codes organize the chart. Financial amounts are entered on leaf codes and roll up to parents for reporting. Cost codes belong to one CBS; a parent and its children must stay in the same structure.
Credence prevents deleting a cost code that has associated financial records. A parent cost code also cannot be deleted when any code below it has associated financial records. Reassign the affected child codes before deleting the former parent.
Activating and Deactivating a CBS¶
An inactive Cost Breakdown Structure cannot be newly assigned to a property.
Credence also prevents deactivating a CBS while it is assigned to a property that still has an active job or project. Close or reassign that work before deactivating the structure. Historical records that already used the structure’s cost codes remain in place.
Deactivating a CBS is not how you switch a property to a different chart. Assign the desired CBS on the property instead.
Common Scenarios¶
- A developer maintains one default CBS for internal job costing and a second structure for lender reporting, then assigns the appropriate structure on each property.
- Before starting a new development job, an administrator assigns the property’s CBS and confirms the needed leaf cost codes are active.
- After a development program ends and related jobs are closed, an unused CBS can be deactivated so it no longer appears for new property assignments.