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This page allows you to allocate the costs incurred from a cost center to other cost centers. Tell me more.
Select the “Create Allocation” link present under “Cost Allocation” business component.
The “Create Allocation” page appears.
Enter the following fields:
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Run No |
The number identifying all the sequence of allocations that have been defined on a finance book for a particular accounting period (Integer). Mandatory. The number entered here should be unique for an accounting period. |
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Press the <Enter> key. | |
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The number identifying the particular allocation of the entire sequence is generated and displayed. |
The system displays the following:
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Sequence No |
The number identifying the particular allocation of the entire sequence of allocations that has been defined on a finance book for a specific accounting period. For example, if the sequence number for the last allocation of the first run number has been generated as 3, then the next number 4 will be generated and displayed for the current allocation process. If no sequence number has been defined on the run number then the system displays 1. |
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Status |
The status of the current sequence of the allocation which must be “Active”. |
Enter the following fields:
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Finance Book |
Use the drop-down list box to select the code identifying the finance book that has been mapped to the login organization unit and the business unit. All the finance books that have been mapped to all the cost centers of the business unit will be available for selection in alphabetical order. The system displays the first value by default on launch of the page. |
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Accounting Year |
Use the drop-down list box to select the accounting year in which the cost allocation is taking place. All the accounting years of the selected finance book that are in “Open” status will be available for selection. The system displays the accounting year in which the system date lies, by default on launch of the page. |
Note: The starting and ending date of the accounting year are concatenated and displayed in the “Accounting Year” field.
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Accounting Period |
Use the drop-down list box to select the accounting period in which the cost allocation is taking place. All the accounting periods of the selected accounting year that are in “Open” status will be available for selection. The system displays the accounting period in which the system date lies, by default on launch of the page. |
Note: The starting and ending date of the accounting period are concatenated and displayed in the “Accounting Period” field.
The run number entered in the “Run No” field should be unique for the “Finance Book” and the “Accounting Period” combination. If the finance book is common across multiple business units then the run number for the combination of “Finance Book”, “Accounting Period” and the “Business Unit” must be unique.
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Allocate On |
Use the drop-down list box to select the type of cost that is involved in the allocation. You can select from “Actuals”, “Budget” or “Both”. |
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The system displays “Actuals” by default on launch of the page. |
Note: If the sequence number of the current allocation is greater than 1, then the value selected in this field must the same as the value of the previous sequence.
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Source Cost Center |
The code identifying the cost center from which the incurred cost is transferred to other cost centers (Alphanumeric, 10). Mandatory. The cost center code entered in this field must have been defined for the business unit in the specific accounting period. |
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Help facility available | |
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Press the <Enter> key. | |
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The system retrieves and displays the description of the cost center. |
Note: No other run number or sequence number should have been defined for the cost center specified in this field at the “Cost Center” level for the same finance book and the same accounting period.
The source cost center should be a detail level cost center.
The system retrieves and displays the following:
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Description |
A brief description of the cost center. |
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Zoom facility available |
Enter the following field:
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Credit Cost Element |
The code identifying the cost element against which the credit entries of the allocation are made (Alphanumeric, 32). The cost element entered here must have been mapped to the source cost center and should be valid for the specified accounting period. The system defaults the value specified in the “Set Parameters” activity of this business component. |
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Press the <Enter> key. | |
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The system retrieves and displays the description of the credit cost element. |
Note: This field must be left blank if the “Use Credit Cost Element” parameter has been set to “No” in the “Set Parameters” activity of this business component.
You can modify the defaulted value of this field only if “Overwrite Credit Cost Element” parameter has been set to “Yes” in the “Set Parameters” activity of this business component.
The type of the credit cost element should be “Normal”.
When the credit cost element value is entered and the “Post Allocation entries to Finance Book” parameter has been set to “Yes” in the “Cost Setup” business component then the credit cost element must have been mapped to only one account code for an accounting period
The system retrieves and displays the following:
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Description |
A brief description of the credit cost element. |
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Zoom facility available |
Enter the following fields in the “Source Cost Center Details” multiline:
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Cost Element |
The code identifying the cost element that has been mapped to the source cost center (Alphanumeric, 32). |
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Help facility available. |
Note: The cost element specified in this field should be a normal cost element.
When the “Post Allocation entries to Finance Book” parameter has been set to “Yes” in the “Cost Setup” business component then the source cost element must have been mapped to only one account code for an accounting period
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Allocation % |
The percentage of cost to be transferred from the cost element (Decimal). Mandatory. The value entered here must be between 0 and 100. |
Note: Atleast one row of data should be entered in the multiline when the allocation level is “Cost Element”. If not, the source cost element is taken as NULL, the allocation level will be ‘Cost Center’ and the allocation % is defaulted as 100% for all.
Duplicate cost element entries should not be present in the multiline.
If the allocation for the combination of the cost center and the cost element has already been done, then the percentage of allocation already done is checked for. If the sum of the previous entries and the current entry is greater than 100 then the allocation is rejected.
Enter the following fields:
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Target Cost Center From |
The starting number in the range of codes identifying the cost center to which the cost is allocated (Alphanumeric, 10). |
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To |
The ending number in the range of codes identifying the cost center to which the cost is allocated (Alphanumeric, 10). |
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Target Cost Element From |
The starting number in the range of codes identifying the cost element that has been mapped to the target cost center (Alphanumeric, 32). |
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To |
The ending number in the range of codes identifying the cost element that has been mapped to the target cost center (Alphanumeric, 32). |
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Debit Cost Element |
The code identifying the cost element against which the debit entries of the cost allocation process are made (Alphanumeric, 32). The value entered here must have been mapped to the target cost center. |
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Press the <Enter> key. | |
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The system retrieves and displays the description of the debit cost element. |
Note: The debit cost element must be a normal cost element.
When the debit cost element value is entered and the “Post Allocation entries to Finance Book” parameter has been set to “Yes” in the “Cost Setup” business component then the debit cost element must have been mapped to only one account code for an accounting period.
When the “Post Allocation entries to Finance Book” parameter has been set to “Yes” in the “Cost Setup” business component then the target cost elements must have been mapped to only one account code for an accounting period
The system displays the following:
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Description |
A brief description of the debit cost element. |
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Zoom facility available |
Enter the following field:
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Ratio/Percentage |
Use the drop-down list box to specify whether the cost is allocated to the target cost elements by means of ratio or percentage. You can select from “Ratio” or “Percentage”. |
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The system displays “Percentage” by default on launch of the page. |
Click the “Get Details” pushbutton to retrieve the target cost center details
The system retrieves and the displays the following cost center and the corresponding cost elements details in the “Target Cost Element Details” multiline:
Note: All the cost centers that satisfied the search criteria and the cost elements that have been mapped to that cost center will be displayed in the multiline.
Enter the following fields:
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Cost Center |
The code identifying the target cost center to which the allocated cost is transferred (Alphanumeric, 10). |
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Help facility available |
Note: The target cost centers should be of the type “Detail”.
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Cost Element |
The code identifying the target cost element that has been mapped to the target cost center (Alphanumeric, 32). |
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Help facility available |
Note: All the cost elements must be of the type “Normal”.
The combination of the cost center and the cost element should not be duplicated.
When the target cost element value is entered and the “Post Allocation entries to Finance Book” parameter has been set to “Yes” in the “Cost Setup” business component then the target cost element must have been mapped to only one account code for an accounting period
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Ratio/Percentage |
The ratio or the percentage of the cost from the source cost center that has to be allocated to the target cost center (Decimal). The value entered in this field should be greater than zero. |
Note: If the allocation is to be done on percentage basis, then the value entered in each row of this field should be between 0 and 100.
If the allocation of cost is done on percentage basis, then the total of all the percentages entered in multiline must be 100.
If the allocation is to be done on percentage basis, then the value entered in each row of this field should be between 0 and 1.
If the allocation of cost is done on percentage basis, then the total of all the percentages entered in multiline must be 1.
Click the “Create Allocation Details” pushbutton to create the allocation details.
Note: The system checks if the source and the target cost centers are the same across allocations. If yes, then the run number that has been assigned to the finance book in a particular accounting period for the source cost center should be less than the run no for the target cost center.
Status Updation
The system saves the allocation details and updates the status of the allocation to “Active”.
Allocation Level Updation
If there are no records retrieved and displayed in the source cost element details multiline then the system updates the allocation level as “CC” (denoting “Cost Center”).
If records are retrieved and displayed in the source cost element details multiline then the system updates the allocation level as “CE” (denoting “Cost Element”).
Allocation Basis Flag Updation
The system updates the Allocation Basis flag to “No”.
The system displays the following:
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Created By |
The login ID of the user who created the allocation details. |
“Cost Center” must have been defined in the “Create Cost Element” activity of the “Cost Setup” business component.
“Cost Element” must have been defined in the “Create Cost Element” activity of the “Cost Setup” business component.
If the basis of allocation is on a budget then the “Cost Element” for budget must have been defined in the “Cost Budget” business component.
“Credit Cost Element” must have been defined in the “Create Cost Element” activity of the “Cost Setup” business component.
The parameter ‘Set Credit Cost Element’ should have been set to “Yes” and the “Default Credit Cost Element” should have been mentioned in the “Set Parameters” activity of this business component
“Debit Cost Element” must have been defined in the “Create Cost Element” activity of the “Cost Setup” business component.
“Finance Book” must have been defined in the “Create Finance Book” activity of the “Organization Setup” business component.
“Accounting Year” and “Accounting Period” must have been defined in the “Create MAC Calender” of the “Cost Setup” business component.
Distribution of cost to target cost elements
Retrieving target cost center details
Distribution of cost to target cost elements
The cost from the source cost centers and cost elements can be distributed among the target cost elements by means of ratio or percentage.
Select “Ratio” from the “Ratio/Percentage” field to distribute cost among target cost elements by means of ratio.
Select “Percentage” from the “Ratio/Percentage” field to distribute cost among target cost elements by means of percentage.
Retrieving target cost center details
The target cost center and cost element details can be retrieved based on some search criteria.
Enter the cost center and the cost element details for search.
Click the “Get Details” pushbutton to retrieve the appropriate details.
Select the finance book, accounting period and Allocate On option.
Enter the source and target cost center details.
Click the “Create Allocation Details” pushbutton to create the allocation details.