Simulating complex cost allocations

This activity allows you to simulate actual and budget costs for complex allocations, in corresponding finance books for an accounting period.

Select the “Simulate Complex Allocation” link under the “Cost Allocation” business component.

The “Process/Cancel Allocation” page appears.

Enter the following details:

Report Type

Use the drop-down list box to specify the report type for which the cost allocation has to be done. The system lists all the active quick codes of type “MAC Allocation Report Type” as defined in the “Cost Setup” business component.

Run #

The run number of the allocation that is to be used for simulation (Integer). Mandatory. The run number entered here must be in “Active” status.

Help facility available.

The system displays the following field:

Run Description

The run description of the allocation.

Enter the following fields:

Allocated On	Use the drop-down list box to select the type of the cost that is involved in the simulation. The system lists the following options: Actuals – Indicates that the allocation is done on the actual cost of a cost center or a cost element. Budget – Indicates that the allocation is done on the budgeted cost of a cost center or a cost element. Both – Indicates that the allocation is done based on the actual cost and the budgeted cost. The system displays “Actuals”, by default.
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 budget unit. The system lists all the active finance books applicable to the organization unit, from the “Finance Book Processing” business component.
Year	Use the drop-down list box to select the accounting year in which the cost allocation is taking place. If the “Allocated On” field is set as “Actuals”, the system lists all the accounting years of the selected finance book that are in “Open” status from the “Cost Setup” business component. Else, the system leaves the field blank. The system displays the accounting year in which the current system date lies, by default. The starting and ending date of the accounting year are concatenated and displayed in this field.
Period	Use the drop-down list box to select the accounting period in which the cost allocation is taking place. If the “Allocated On” field is set as “Actuals”, the system lists all the accounting periods of the selected accounting year that are in “Open” status from the “Cost Setup” business component. Else, the system leaves the field blank. The system displays the accounting period in which the current system date lies, by default. The starting and ending date of the accounting period are concatenated and displayed in this field.
Budget #	The number identifying the budget of the cost element that is being simulated. Entry in this field is mandatory, if the “Allocation On” field is set as “Budget”. Help facility available.

Note: The budget should be a period budget and should be of the type “Cost Center – Cost Element” in “Authorized” status, as defined in the “Cost Budget” business component.

Enter the following:

Version #

The number identifying the version of the budget. Entry in this field is mandatory, if the “Budget #” field is entered.

Click the “Process” pushbutton to simulate the allocations.

The system considers all the runs till the current run, to simulate the allocation on an incremental basis.

If the “Allocation On” is set as “Actuals”, the system computes the allocation amount by multiplying the “CC-CE Balance” and the “Allocation %”, for a report type, accounting year, accounting period and finance book, based on all the cost elements mapped to the source cost centers valid for the accounting period.

If the “Allocation On” field is set as “Budget”, the system ensures the following:

the budget is not a periodic budget.
the budget definition type is set as “Cost Center-Cost Element” in the “Cost Budget” business component.
the budget exists in “Authorized” status for the account year and the accounting period selected.

The system calculates the budgeted amount for the Source CC, Source CE, Budget No, Version No and the accounting period, for all the cost elements mapped to the source cost centers valid for the accounting period. The system computes the allocation amount as the product of the budgeted base amount and allocation percentage.

If “Allocation On” is set as “Both”, the system computes the allocation as calculated for the “Actuals” and ensures that the conditions defined for the budgeted allocation are satisfied.

Note: When “Allocation On” is set as ‘Actuals’, and Reporting Cost Center has been set in Allocation setup in the “Maintain Complex Allocation” page, then Reporting Cost center will also be considered for allocation processing similar to that of detailed cost center.

Click the “Cancel” pushbutton to cancel the simulation process.

Note: You can cancel the simulation of allocation process, only if the run number is in “Active” status and there is no subsequent run number.

You cannot cancel the process, if the allocation has been already processed for the ‘Active’ run number.

On cancellation, the status of the allocation changes to “Active”.

The system displays the following details:

Created By	The login ID of the user who created the allocation details.
Created Date	The date on which the user created the allocation details.
Last Modified By	The login ID of the user who modified the allocation details.
Last Modified Date	The date on which the details were modified last.