Methods of controlling cost allocations
- during work on a current basis – the system checks active cost allocations which in parameter Control cost allocation while posting have option Warn or Block set. When attempting to save a posting document, it is verified whether it fulfills conditions specified in cost allocation definition. If it fulfills the conditions – it will be added. If not – the system displays a warning or message informing about error, depending on set type of control. The control on a current basis includes all defined cost allocations – journal entry is considered correct if it fulfills all the defined cost allocations. The control on a current basis includes all defined cost allocations – regardless of the way in which they were created, that is whether they were entered by a user or created automatically by the system. The control is performed also during confirmation of journal entries.
- on request – a user can check whether conditions of cost allocations are fulfilled, by clicking on [Check Cost Allocations] button. The control is available for documents:
- journal entry
- accounting note
- opening balance
- unposted entry view
A document fulfills a cos allocation if the following totals are equal:
- total of journal entries registered on accounts defined as source accounts
- total of journal entries registered on accounts defined as target accounts
- total of journal entries registered on accounts defined as settlement accounts
In case a settlement account is not specified, then correctness of the totals below is controlled:
- total of journal entries registered on accounts defined as source accounts
- total of journal entries registered on accounts defined as target accounts
1. A cost allocation [4 and 5] has been defined as follows:
Account Account Type Account Side
4* Source Any
5* Target Any
490 Settlement Any
2. The following journal entry was registered:
Account Account Side Amount
100 CR 5000 USD
410 DR 4000 USD
420 DR 1000 USD
501/490 DR/CR 3000 USD
502/490 DR/CR 1000 USD
total of entries on source accounts: 5000 USD
total of entries on target accounts: 4000,00 PLN
total of entries on settlement account: 4000,00 PLN
The cost allocation [4 and 5] is not fulfilled, because the above totals do not equal.
Reporting of discrepancies among journal entries
Apart from using the option of checking cost allocations, which is available on the form of accounting documents, it is also possible to control selected journal entries in a single batch.
The option of reporting in a single batch is available from the level of the lists Accounting –> Ledger and Accounting > Account. After selecting the option [Check Cost Allocation], a window with the following parameters is opened:
- Correctness condition for journal entry – this parameter can take the following values:
- Fulfill all cost allocations – journal entry is considered correct if it meets all the cost allocations
- Fulfill at least one cost allocation – journal entry is considered correct if it meets at least one cost allocation
- Show only entries which do not fulfill cost allocations – if selected, the list of journal entries displayed after being controlled in reference to cost allocations is filtered only to entries which do not fulfill cost allocation(s)
- Cost allocations – the parameter takes one of the following values:
- All – correctness of entries with all the cost allocations is controlled
- Selected cost allocation – correctness of entries with a selected cost allocation is controlled
- Display in Log – the parameter takes one of the following values:
- Only invalid entries
- All entries
- an accounting document is confirmed (confirmed journal entry, confirmed opening balance, confirmed accounting note),
- an accounting document is modified in such a way that it is possible to save the document,
- it results from the cost allocation definition, that saving of accounting document should be blocked,
- instead of blocked saving, a warning is displayed.
On the list of journal entries, there is a printout Journal Entries – Cost Allocations Control available. This printout presents the journal entries which do not fulfill the conditions of cost allocation.