Cost Center Allocation

By default, Accountants can select a single cost center that is used for all postings to P&L accounts. If Cost Center Allocation is enabled in Financial Organization Structure (either at the system or company level), you can split all postings (other than currency rounding adjustment postings) to P&L accounts across multiple cost centers. For currency rounding adjustment postings to P&L accounts, the application uses the cost objects that you have identified as the "Main Cost Objects".

By specifying the percentages allocated to each cost center, the affected posted documents will have one line item for each cost center, with the defined percentage of the cost.

You can initially define the cost center allocation rules at the contract level, which are then copied down to the activation groups. If you need to modify the rules, you can either modify the rules for each individual units, or use the Bulk Modify Unit Cost Center Allocation option in the activation group context menu. Postings always use the cost objects defined in the units. You can also modify the rules for multiple units in different activation groups using Mass Modification jobs.

Once the allocation rules have been defined, the Cost Center and Profit Center fields in filters and reports are used in the following manner:

Report/Job Profile/Job Filters Report Table or Posting Job Fields
Disclosure Report Activation group main cost objects Full amount recorded under the activation group main cost objects
Periodic Posting Status Report Unit main cost objects n/a
Consolidated Transaction Report Unit cost objects (main or secondary) Partial amount per unit cost objects (i.e., the cost objects selected in the filter)
Mass Postings Unit main cost objects All relevant unit cost objects
Mass Indexation Activation group main cost objects n/a
Mass Workflow Transition Main cost objects of the selected level n/a
Mass Modifications Main cost objects of the selected level n/a

Note that the Activity Analysis Report and GL Balance Report do not use or display cost objects.

To set up the cost center allocation rules in the contract:

  1. Open the contract.
  2. Navigate to the Accounting Page.
  3. In the Primary Cost Objects section, click Add to open the Add Cost Center Allocation window.
    1. Select a Cost Center and optional Profit Center.
    2. Enter the Allocation Percentage.
    3. Click to add a second row and repeat the previous two steps.
    4. If required, click to delete a row.
    5. Once you have added all of the required rows, select which cost center is the Main Cost Object, which is used for any other situation.
    6. Click Submit.

To edit the cost center allocation rules per unit:

  1. Open the activation group.
  2. Navigate to the Unit List page.
  3. Click on the required unit to view or modify unit information.
  4. Click Edit.
  5. Select the Effective Date for these changes.
  6. Modify the rules as required, following the options in the previous list and click Submit.

To edit the cost center allocation rules for multiple units in the same activation group:

  1. Open the activation group.
  2. Click Context Menu > Bulk Modify Unit Cost Center Allocation.
  3. Modify the rules as required, following the options in the first list.
  4. Select the units that you want to apply the changes to.
  5. Click Submit.

To view previous cost center allocation rules per unit:

  1. Open the activation group.
  2. Navigate to the Unit List page.
  3. Click on the required unit to view or modify unit information.
  4. Click History. The latest set of rules is displayed by default.
  5. In the History drop-down, select the a previous record to view the cost center allocation rules at that time.

See also:  

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