Setting Up Cost of Capital

This section discusses how to set up cost of capital percentage.

Page Used to Set Up Cost of Capital

Page Name	Definition Name	Navigation	Usage
Cost of Capital	AB_CST_OF_CAPTL	select Activity Based Management, then select Setup, then select Resources, then select Cost of Capital	Set up capital charges for resources that can be assigned to activities and cost objects.

Use the Cost of Capital page (AB_CST_OF_CAPTL) to set up capital charges for resources that can be assigned to activities and cost objects.

Navigation

select Activity Based Management, then select Setup, then select Resources, then select Cost of Capital

Cost of Capital

Enter the numeric percentage amount that the system should use when assigning cost to a resource based on the ledger mapping rule.

Note: The applied formula is:

(AMT_FROM_SOURCE_LEDGER) × (ABC_PERCENTAGE ÷ 100) × (AB_COC_PERCENTAGE ÷ 100)

If AB_COC_PERCENTAGE is not defined, the default is 1.

Note: Set up cost of capital before setting up resources.

Set up cost of capital at the SetID level to link the cost of capital to resources using the Resource Definition page.