Adding, editing, or cloning reclass definitions

Reclassification is the process of moving dollars from one general ledger location to another. Unlike allocations that allow you to move only overhead expenses, you can use reclasses to move expenses, statistics, revenue, deductions, and other dollar types from one department or account to another.

A reclass definition is set of business rules and data sources used to define the conditions in which to move the expenses from direct departments to other departments where the patient activity exists. The definition allows you to:

  • Identify the source of the reclass by specifying the departments and accounts house the expenses to move

  • Select the statistic to use to spread the expenses

  • Identify the targeted departments for the spread

  • Select the cost category in which to push the costs to

To offset expenses in your costing model with other operating revenue, you can create a reclass definition to handle this scenario. Consider the following before adding this type of reclass definition:

  • Is this revenue related to the expenses in this department?

  • Should it be spread to multiple departments?

  • Do you want to the offset to be in its own cost category or a just to reduce a specific expense cost category?

Setting up this type of definition is very similar to other types of reclasses. The only difference is that you will need to select Yes in the Revenue only? toggle in the definition dialog to identify the source of the revenue departments and accounts to reclass.

The Manage reclass definitions page allows you to view and configure reclass definitions, and selecting the department or accounts in which to reclass dollars from and to. You can create a new definition by cloning an existing definition and editing it.

Axiom allows you to create multiple versions of the reclass definition table to assign across your cost models. For more information on how cost models work, see Working with cost models.

NOTE: When processing reclasses, Axiom automatically generates a reclass revenue account in the database by adding +1 to the reclass account. For example, if a reclass account is 20000, then the revenue reclass account will be 20001.

To add, edit, or clone reclass definitions:

  1. From the Enterprise Decision Support home page, in the Cost accounting section, click Modify a cost model or Create a cost model.

  2. The last cost model selected is shown at the top of the page. To change cost models, select another one from the Select cost model drop-down.

  3. Under the Reclasses and allocations section, click Define reclasses.

  4. To show or hide inactive definitions in the table, click the gear icon in the upper-right portion of the screen and check/uncheck the Show only active definitions check box. While unchecked, the table shows inactive definitions shaded in yellow. Only active definitions include a check mark in the Active column.

  5. If there is not an existing reclass definition table version assigned to this cost model, the table will be empty.

    1. Click the link in the "Create or select a version here" text within the table.

    2. In the Modify a cost model dialog, from the Reclass drop-down, do one of the following and click Save:

      • To create a new version of the reclass definition table, select Create new version.

      • To assign an existing version of the reclass definition table, select the version from the list.

  6. If there is an existing reclass definition table version assigned to this cost model and you would like to modify it:

    1. Click the link in the cost model's name in the table's header.

    2. In the Modify a cost model dialog, from the Reclass drop-down, do one of the following and click Save:

      • To create a new version of the reclass definition table, select Create new version.

      • To assign an existing version of the reclass definition table, select the version from the list.

    NOTE: Steps 5-6 are optional. As part of the initial set up of the cost model, the version has likely already been created or selected. This step simply provides you a quick and easy way to select another version to use or create a new one from scratch, if needed.

  7. Do any of the following:

    • To add a definition, do one of the following:

      • If you are not yet sure in what order to place the new definition, click + Add definition at the top of the page. The system places the definition to the bottom of the list of active definitions.
      • If you know where to place the new definition in the list, click the plus icon in the Actions column of the definition that should be on top of it. The system places the definition after that definition.
    • To edit a definition, click the edit icon in its Actions column.
    • To clone a definition, click the notepad icon in the Actions column. In the Edit reclass definition dialog, click Clone in the bottom left corner.
  8. If adding a definition, in the Select reclass type dialog, select the type of reclass to add, and click OK.

  9. In the Add/Edit reclass definition dialog, complete the following, and click Save:

    Field Description
    Title* The name of the definition.
    Comment The details or description of the definition.
    Activate?

    Do one of the following:

    • To activate the definition for cost model processing, click the toggle to Yes.
    • To deactivate the definition so that it is not processed with the cost model, click the toggle to No.

    For more information regarding this option, see Activating or deactivating reclass definitions.
    Use source cost categories? (Department reclasses only)

    Do one of the following:

    • To create the pseudo account for all of the cost categories for your target departments, click the toggle to Yes. The system will create the pseudo account for all of the accounts you select further on in this utility.
    • To create only one pseudo account, click No.
    Cost category (Department reclasses only)

    If you set the Use Source Cost Categories toggle to No, select the cost category in which to apply the pseudo account.
    Full reclass? (Department reclasses only)

    To reclass all the accounts including statistics click the toggle to Yes.

    NOTE: This option does not reclass revenue accounts.

    TIP: If you only want to reclass specific accounts instead of a full reclass, select the Include statistics? option.
    Revenue only? (Account and department reclasses only) To reclass revenue accounts only, click the toggle to Yes.
    Include statistics? (Department reclasses only)

    To reclass statistic accounts as well as other accounts, click the toggle to Yes.

    TIP: You can use this option to not only reclass statistic accounts but also add/select filters to reclass specific accounts.

    % or $

    Select to reclass the department(s) by a percentage or dollar amount, and enter a maximum percentage or dollar amount. The default is to reclass 100% of the department(s).

    For example, let's say a doctor is also a professor, and you want to move half of his $120,000 salary into a teaching department. You can use this option to move $60,000 of his salary to that department.

    NOTE: If you reclass from multiple departments, the system determines the percent to reclass by weight. For example, if you have two departments and one department is twice as large as the other, the system will allocate twice as much from the larger department. The system also does not allow you to reclass to a negative amount. So if you reclass $50,000 but only have $36,000 available, then the system will only reclass the full $36,000
    Allow reclass rules with 0 results

    To allow Axiom to process and save $0 of movement when the reclass is processed, click the toggle to enable this option.

    NOTE: If you do not select this option and the reclass processes $0 of movement, the reclass will fail.

    For example, if you reclass teaching dollars that only happen six months out of the year, then you may want to use this option.
    1. From departments

    Select source departments to allocate dollars from by clicking the funnel icon to add or select a filter. For instructions, see Using the Filter Wizard.For instructions, see "Using the Filter Wizard" in the online help.

    TIP: Preview the filter query or results by clicking the notepad icon or spreadsheet icon to toggle between the two views.
    And accounts

    Select the account(s) to allocate by clicking the funnel icon to add or select a filter.
    2. Reclass based on

    Select the statistic account(s) in which to reclass by clicking the funnel icon to add or select a filter.
    3. To departments (Account and department reclasses only)

    Do one of the following:

    • To reclass to all the departments based on the criteria selected in the 2. Reclass based on section, select All departments.

    • To reclass to specific departments, select Select department(s), and click the funnel icon to add or select a filter.

    NOTE: This option does not apply to payroll reclass definitions because the reclass is automatically applied to all payroll departments by default.
  10. Edit the definition processing order, as needed.
  11. If you are creating a new model, the next step is to define your allocations. Click Next in the bottom right corner of the page or click the Allocation definitions tab at the top of the page.
  12. If you are modifying an existing cost model, you can continue making changes to other parts of the model or go directly to processing the cost model if this is your only change.

    IMPORTANT: When making any changes to an existing cost model, you must reprocess it in order for the results to reflect the changes.