Set Up Financial Classes

Use financial classes to: categorize resources, companies, investments, and transactions, uniquely describe rules when processing chargeback-related transactions, and enable projects for financial processing.
Resource Classes
Use resource classes to categorize financially enabled resources. Here are some examples:
  • Organizational. Executive, management, or staff.
  • Geographical category. Local, offshore, or EMEA.
  • Skill Level. Principal, senior, or associate.
  • Equipment. Computer hardware, software, or office equipment.
  • Materials. Specifications, presentations, or user guides.
  You can associate a resource to only one resource class.
Company Classes
Company classes categorize clients, vertical markets, or lines of business within your financial organization and are required when financially enabling a company. Use company classes for the following reasons:
  • Associating with a company.
  • Defining cost or rate matrices.
  • Reporting.
A company can belong to only one company class at a time. Here are some examples:
  • Industry. Government, education, consumer, technology
  • Region. North America, South America, EMEA
Do not delete the company class if a company is associated with the company class. Deleting assigned company classes causes validation errors.
Investment Classes
Use investment classes to categorize work logically within an organization. For example, you can use investment classes to categorize investments.
Work in Process Classes
Use work-in-process (WIP) classes to categorize companies and investments. WIP is also used to indicate methods of revenue recognition. You can use the WIP class to define the rates and costs for transactions, and to group transactions for posting to the general ledger. For projects, you can use them to calculate recognized revenue.
If the WIP class is currently associated with a company, investment, or transaction, do not delete the WIP class.
Transaction Classes
Transaction classes are user-defined values that group transaction types. For example, to categorize the labor transaction type for financial reporting and analysis in your organization, add the following transaction classes:
  • Consulting
  • Development
  • Sales
Here are some other examples:
  • Hardware for equipment
  • Software for material
  • Travel for expense
Define at least one transaction class for each of the transaction types in the following table:
Transaction Type
System Identifier
Labor. Used to capture people hours that are associated with costs.
Material. Used to capture asset costs.
Equipment. Used to capture physical asset costs.
Expense. Used to capture all other costs.
Every transaction is associated with a transaction class. This association is useful when applying costs to investments in an organization.