HBMG Inc

Establish the Customer Profile

The team based on client input, will establish the client profile (contact information) in LOSCA.

Establish Application "Security" Privileges

The team based on client input, will establish client security privileges in LOSCA

Establish the "Cost Allocation Plan"

The team will assist the client in establishing the client specific cost allocation plan in LOSCA.  The cost allocation plan identifies the:

-        Products and/or services that are offered by the client (final cost pools)

-        Areas of shared costs (intermediate cost pools)

-        Rules for the allocation of shared costs (allocation criteria)

-        Rules for the allocation of administrative costs (allocation criteria)

Establish the Client Specific "Chart of Accounts"

The team will assist the client in establishing the client specific Chart of Accounts in LOSCA.  The Chart of Accounts identifies the:

-        Revenue and cost accounts from the client produced "Statement of Operations"

-        Rules for the allocation of each chart of account.  Cost accounts may be allocated based on data from one of the following sources:

o      Employee records

o      Fixed asset records

o      Vendor invoices

o      Client designated percentages

Establish Employee, Fixed Asset and Vendor Records

The team will assist the client in establishing the initial employee, fixed asset, and vendor records in LOSCA.  These records (files) will be used to allocate certain cost accounts from the Statement of Operations based on the allocation rules established by the client in the Cost Allocation Plan.

Establishing Categories of Service

For reporting purposes, the client may establish one or more Categories of Service.  A Category of Service is a grouping of two or more products or services offered by the client. 

Enter Monthly Data into the Application

The client will enter the following data into LOSCA on a monthly basis:

-        The actual revenue and cost from the client produced entity level Statement of Operations.  The total of all profit and loss reports produced by LOSCA at the product/service level will balance to the entity level Statement of Operations.

-        The client will enter the monthly revenue (if applicable) by product/service into LOSCA

-        The client will update employee and fixed asset records in LOSCA as required to:

o      Add new employees and fixed assets as applicable

o      Delete employees and fixed assets as applicable

o      Revise employee and fixed asset records as applicable (i.e. - change in employee pay)

-        The client will enter and/or update vendor invoice data in LOSCA

-        The client will enter "Intermediate Cost Pool" statistics into LOSCA

-        The client will close the month when all data for the month is entered

Produce Monthly and Year-to-Date Reports

Once the month is closed, the client may run a variety of pre-defined reports in LOSCA to include:

-        Executive Summary - Monthly Reports

-        Executive Summary - YTD Reports

-        Category of Service - Monthly Reports

-        Category of Service - YTD Reports

-        Line of Service - Detail Reports

Utilizing the Rate Analysis Tool

This LOSCA reporting tool provides the client the ability to perform "Rate Analysis" at the rate element level.  The client could perform various "What-If" scenarios with existing and/or proposed product/service rates to assist in insuring that rates were based on fully allocated cost.  This is particularly important for clients that are governed by the federal government's OMB Circular A-87.