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In Planning Maestro, you can analyze your company’s data and create budgets and forecasts. These budgets can include Drivers: non-financial factors or variables (assumptions) involved in your company’s budgets. These factors or variables “drive” or directly influence operating expenses, revenue, and personnel in your company.
Related Cost Drivers record costs attached to Revenue line items, such as a shipping and handling fees. To review, add to, edit, or delete the budgeted amounts for Related Cost Drivers in Planning Maestro, use the Drivers application, which is in the Planning module.
This document shows you, a Planning Maestro user, how to set up the properties of a Related Cost Driver.
Setting up A Related Cost Driver’s Properties
To locate the Drivers application and create a new a Related Cost Driver, see Managing Drivers. After adding the Related Cost Driver, click the Expand icon ( ) to open the Properties pane.
The Properties pane opens.
A Related Cost Driver’s Properties pane contains the following fields:
Use the General section of the Properties pane to set up the name and description of this Input Driver.
- Name – If needed, click on this field to edit the line item’s name.
- Descriptions 1-4 – You can add up to four descriptions of this line item as reminders or extra information for yourself or other budget contributors. These notes do not appear in reports. To add a description, click on the space beside Description 1, Description 2, Description 3, or Description 4 and enter a description.
Use the Date section of the Properties pane to set up the timing of this Related Cost Driver.
- Time Hierarchy – The structure of your calendar view, or how the columns on the right side of the table represent periods, quarters, and years.
- Start Date – Click on this field and enter the start date for this Related Cost Driver. You can also select the date from the calendar.
- End Date – Click on this field and enter the end date for this Related Cost Driver, or select the date from the calendar. You can also leave the date as Never Ends to let this expense continue indefinitely.
Use the Driver Basis section to determine the nature or function of this Related Cost Driver.
- Driver Type – This field displays the Driver Type you chose (Related Cost).
Please Note: You can click on this field to open a dropdown menu and select a new Driver Type if needed. If you choose a new Driver Type, the Properties pane fields for this Driver change (thought they may keep some of the data you entered).
Use the Driver Input section to determine how this Related Cost Driver’s amount functions.
Input Orientation – Click on this dropdown menu and select one of the following options:
- Cash – Select this option if this Related Cost is a single cost attached to a Revenue line item (in other words, the amount of this Related Cost does not depend on the number of units).
Example: Subscription to a software program that costs $25,000 per year, no matter how many people use it.
- Units – Select this option if this Related Cost depends on how many units you produce. This cost could be the cost of components, labor, or other costs related to producing these units.
Example: Subscription to a software program that costs $10 per user per month.
- Use Data Link – To use information from this module or another module for this Related Cost Driver (for example, connecting to another Driver named “Weight of a Standard Package” for shipping and handling) click on this toggle switch to turn it to the ON position.
- Allow User Input – This field only appears if you are not using a Data Link. To enable users to edit period amounts for this Related Cost Driver, click on this toggle switch to switch it to the ON position.
- Amount – This field only appears if you are not using a Data Link. This amount defines the Cost of Goods Sold (COGS) for this Related Cost Driver.
- Spread Method – Click on this dropdown menu and select a Spread Method.
- Increase/Decrease Method – If this Input Driver involves periodic increases or decreases, select 0 selected (Edit) to choose an Increase/Decrease Method.
- Recognition Schedule – Click on this dropdown menu and select a Recognition Schedule.
Related Cost Properties
Use the Related Cost properties section to enter the properties of this Related Cost Driver.
- Payment Schedule – Click on this dropdown menu and select a Payment Schedule for this Related Cost.
- Cost GL Account – Click on this dropdown menu and select a GL Account for this Driver’s The GL Account you select affects your P&L, or Income Statement.
After you finish setting up the properties for this Related Cost Driver, the Driver is complete. To edit or delete this Related Cost Driver, see Managing Drivers.