Expense Allocation based on multiple allocation codes to get allocation code wise break-ups in Item cost as well as effect in Final accounting

Prerequisites

1. Two or more expense accounts need to populate for expense allocation for Items.

2. Items need to be produced through batch on the particular period.

Step 1 First you need to set up two allocation code and two cost component class. Cost component class should have ‘Expense Allocation’ as Usage, and naming should be same as the allocation code to simplify the breakup in item cost view.

Step 2 Then you need to set up two Expense Allocation Basis (Allocation Definitions). Allocation code will be above two and Allocation Basis will be ‘fixed %’. Now you set same item or items in same organization with required percentage (in case of more than one item) for prepared Allocation definitions.

Step 3 Now need to set Expense to allocate. Prepare that twice with two allocation code and put the above populated accounts on ‘From Account’ and ‘To Account’. Balance type will be ‘Actual’.

Step 4 Run a request from OPM Financial responsibility named ‘OPM Cost Allocation Process’ with respective parameters (here in parameter, Allocation from and Allocation to will be two allocation codes)

Step 5 Now see Item Cost, two expense lines has been generated with the above cost component classes.

EFFECT IN FINAL ACCOUNTING

To have effect in accounting, in Account Derivation rule (Rule Code: ALC) put the above populated accounts in two lines (at the ‘priorities’ tab).

And in ‘Conditions’ add another line i.e. ‘Cost component class = Constant ‘above cost component classes’)

Now run the cost processes and create accounting in final mode.

NAVIGATIONS:

Cost component class: OPM Financial-Set up

Allocation code: OPM Financial-Set up-Actual costs-Expense Allocations

Allocation Basis: OPM Financial-Set up-Actual costs-Expense Allocations

Expense to Allocate: OPM Financial-Set up-Actual costs-Expense Allocations

Item Cost: OPM Financial

Account Derivation Rule: OPM Financials-Set up-Subledger Accounting Setups-Accounting Methods Builder.