Creating or modifying cost allocation basis

Creating or modifying the cost allocation basis

This page allows you to create an allocation basis by which costs from source cost centers can be distributed among target cost centers. Tell me more.

Select the “Create/Edit Allocation Basis” link in the “Multiple Complex allocation Setup” page.

The “Create/EditAllocation Basis” page appears.

Note: This page can be invoked only if the “Apportionment Basis” field is set as “Allocation Element” in the “Multiple Complex Allocation Setup” page.

The system displays the following:

Report Type	The report type for which the cost allocation is taking place.
Allocation Element	The cost element for which the allocation is taking place.
Status	The status of the allocation, which must be “Active”.
Finance Book	The code identifying the finance book that has been mapped to the run number.
Year	The accounting year in which the cost allocation is taking place.
Period	The accounting period present within the accounting year in which the cost allocation is taking place.
Run No	The number identifying the sequence of allocations that have been defined on a finance book for a particular accounting period.

Note: The run number displayed here must be valid for the report type, finance book, accounting year and the accounting period.

Run Description	The run description of the allocation.
Source Cost Center Type	The type of the cost center from which the incurred cost is transferred or allocated to the other cost centers.
Target Cost Center Type	The type of the cost center to which the incurred cost is transferred.

Click the “Get Details” pushbutton, to retrieve the allocation basis details in the multiline.

The system displays the following details in the “Allocation Basis Details” multiline:

Source Cost Center	The code identifying the cost center from which the cost is allocated.
Target Cost Center	The code identifying the cost center to which the cost is allocated.

Modify the following:

Value

The value based on which the cost is distributed to the target cost elements. Ensure that a positive value is entered in this field. If the “Allocation Element “ is “Flying Hours”, The system displays the aggregate value of the flying hours from the source cost center to the target cost center.

Click the “Create” pushbutton to create allocation basis for the target cost elements.

Note: The system ensures that the allocation has not been processed for the run number, report type, accounting year, accounting period and the finance book.

The system also ensures that the allocation element is the same as that defined for the run number.

Click the “Edit” pushbutton, to modify the allocation basis details.
Click the “Delete” pushbutton, to delete the allocation basis.

On deletion of the allocation basis, the status of the run number changes to “Fresh”.

The system displays the following:

Created By	The login ID of the user who created the allocation basis.
Created Date	The date on which the allocation basis was created.
Last Modified By	The login ID of the user who modified the allocation basis.
Last Modified Date	The date on which the allocation basis was modified.

Creating or modifying cost allocation basis – An overview

This page allows you to create an allocation basis by which costs from source cost centers can be distributed among target cost centers. You can create the allocation basis for “Active” cost elements.

You can specify the value based on which the cost is distributed to the target cost elements, and based on which the allocation is done. For example, if the “Allocation Element “ is “Flying Hours”, the system considers the aggregate value of the flying hours from the source cost center to the target cost center, for the allocation to be carried out.

This page also allows you to modify or delete the allocation basis. On deletion, the system updates the status of the run number as “Fresh”.