Use this screen to create the Cost Transfer Journal Entry. When the cost of a project is charged to the performing organization(s) and the revenue is collected by the owning organization, a mismatching of revenue and expenses appears on income statements printed by organization. This application creates a journal entry that will reallocate the cost from the performing organization to the owning organization. Once you have posted the journal entry, you can print, by organization, income statements that accurately match costs and revenue.
You must designate which accounts will be used to transfer the costs before creating this journal entry. You should have entered the direct accounts in the Set Up Financial Statements screen (Accounting » General Ledger » Financial Statement Setup); pool accounts in the Cost Pools screen (Projects » Cost and Revenue Processing » Cost Pool Setup). You should also have linked the transfer accounts to the proper organizations and to their respective financial statement lines.
You can select the ending subperiod this journal entry will encompass. You can also select the rate type, actual or target, at which costs will transfer. The entry will calculate on a YTD, reversing basis. The reversal of the journal entry will be inserted in the first open subperiod of the next period.
Note that you should create the Cost Transfer Journal Entry only once for a given period. If you need to create a second journal entry for the same period, you must determine whether the first journal entry has been posted. If the first journal entry has not been posted, use the Enter JEs screen (Accounting » General Ledger » Journal Entries (JEs)) to delete it and create the journal entry again. If the first journal entry has been posted, execute the Reverse Posted JE screen (Accounting » General Ledger » Journal Entries (JEs)) to delete it. After deleting the reversal of the first journal entry in the next period, create the journal entry again.
Use this group box to select the period for which the journal entry should be created.
Use this drop-down list to select a valid fiscal year for which you are creating the Cost Transfer Journal Entry.
Use this drop-down list to select a valid period for which you are creating the Cost Transfer Journal Entry.
Use this drop-down list to select a valid subperiod for which you are creating the Cost Transfer Journal Entry.
Use this group box to select the rate type that will be used to calculate the indirect cost that will be reclassified. These rates will be taken from the Pool Rates subtask of the Cost Pools screen (Projects » Cost and Revenue Processing » Cost Pool Setup). If you select Actual, make sure that you have calculated rates for the Period entered. If you select Target, make sure that you have entered the rates for the Period entered.
Select this option to calculate indirect costs at actual rates.
Select this option to calculate indirect costs at target rates.
Click the Create Cost Transfer JE icon on the toolbar to create the Cost Transfer Journal Entry based on the parameters you have specified. When the process has finished, the system will display a message indicating the number of the journal entry created. You can then edit and post the journal entry in the normal manner.