Debt Cost

The Debt Cost (DEBTCST) page allows you to set up Debt Costs that can be used to capture information for reporting purposes. Use of the Debt Cost tab of the debt transaction and the Debt Cost page is optional.

Even if the costs were recorded by an accounting transaction (for example, they were on a payment request with the Debt ID), users can enter the costs again on the Debt Costs tab of a debt transaction for a single source of information. Another reason would be that some costs are recorded on accounting transactions in a ‘lump sum’ to a summarized chart of account level. The Debt Cost feature in Debt Management allows those to be broken down into discrete amounts without imposing a chart of account burden.

Each Debt Cost record must be assigned to one of the three values in the Major Type of Debt field. This assignment allows transactions in Debt Management to present (and edit) only Debt Cost values that match the Major Type of Debt of the transaction.

Field Name	Field Description
Major Type of Debt	A required choice to associate a debt cost with one of the three choices: Loan, Lease, or Bond.
Debt Cost	A required unique identification of a debt cost.
Name	A required text field for assigning a name to a debt cost code for identification and reporting purposes. This name will be inferred as the Debt Cost Name on the debt transactions.
Short Name	A required short text field for assigning short name to a debt cost code for identification and reporting purposes.
Description	An optional long text field for defining additional information about a debt cost for identification and reporting purposes. This description will not be inferred as the Debt Cost Description on the debt transactions.
Debt Cost Type	A required definition of the type of cost that provides an informational grouping of similar debt costs. This setting is inferred to debt transactions. Valid values for this field are: Actual Cost – This value indicates a debt cost that has occurred and should be included in the Total Debt Costs amount. This is the default value on the Debt Type page. Debt Costs for a debt instrument with this setting are summarized into the Total Debt Costs field found on the three debt instrument registry pages: BOND, LEASE, and LOAN. Potential Cost – This value indicates a debt cost that may occur. The cost is entered for informational purposes and is not included in the Total Debt Costs amount. Tracking Amount – This value indicates an amount that is being tracked only for informational purposes. Actual use of this value is up to each implementation.