Use this screen to set up projects that you want to allocate to other projects. Use the multi-job allocation feature to allocate a project, or even an entire project tree, to one or more other projects.
You can use various options to customize the costs allocated. You can allocate costs on a current or year-to-date basis with an option to include indirect burden costs, at either actual or target rates, with the allocation. You can also include hourly data such as account, labor category, and employee information. The basis for allocation can be one of three options: "Cost Incurred," "Hours Incurred," or "Percentage." The "Cost Incurred" and "Hours Incurred" methods allow for ranges of projects, accounts, and organizations in the base. The "Percentage" method allows for the allocation of costs to non-project accounts and project accounts.
The Multi-Job Allocation Setup screen serves as a service center for projects. You set up the project to be allocated like other projects so that full cost accumulation and reporting capabilities are possible. However, because one of the project's main purposes is to allocate to other projects, you should not set it up as a billable job.
The project is allocated when you generate a journal entry from the Compute Multi-Job Allocations screen. Once you review and post the allocation, it becomes a component cost to the projects receiving it and a credit to the project allocating it. The allocation history for the cost and hours is stored in the Multi-Job Allocation Cost History screen (Projects\Configure\Allocations) and Multi-Job Allocation Labor History screen (Projects\Configure\Allocations), respectively.
This screen consists of two blocks and three subtasks. Use them as follows:
Use the fields in the Identification block to enter the project allocation code. This code is used to identify the multi-job when you run the Compute Multi-Job Allocations screen.
Use the fields in the Allocation Details block to enter the project to allocate, the allocation method, the allocation basis, rate type, and credit information.
Use the fields in the Cost Accounts subtask to enter the accounts that will be allocated to other projects. You can include all the accounts charged to the multi-job project or only a few accounts.
Use the table window in the Cost/Hours Base subtask to enter the projects, accounts, and organizations that will receive the multi-job allocation.
Use the table window in the Percentage Base subtask to enter the project, debit account and organization, the percentage to allocate, the residual flag, and dollar limit for each allocation.
Set up this screen before creating any multi-job allocation journal entries. No further maintenance of this screen is required unless one of the variables changes.
Use the field in this block to define the project allocation code.
Enter, up to a six alphanumeric characters, a code for this allocation. This code becomes the identifier for this allocation setup.
If you set up separate codes for labor and non-labor allocations on the same project, you can separately allocate the labor hours information for the labor accounts.
Use the fields in this block to select a project to allocate, an allocation method, the allocation basis, the rate type, and the credit information.
Enter, or use Lookup to select, the project for which you want to allocate costs to other projects.
This project can be at any level of the project tree. All project classifications (e.g., Direct Project, Bid & Proposal, etc.) are eligible for allocation. The name of the selected project will display in the adjacent non-editable field.
Include Lower Level Costs
Select this checkbox to include the lower levels of the project specified in the Project To Allocate field in the calculation of the amount to allocate.
Use the drop-down box to select one of the allocation methods. Valid selections and their allocation descriptions are as follows:
Cost Incurred - The cost incurred method summarizes the incurred costs for the project to allocate for the fiscal year, period, and subperiod selected on the process screen to derive the total costs to be allocated. The performing organization develops percentages of the total contribution. The basis for allocation is summarized, for the same period, for the range of projects, accounts, and organizations specified in the allocation basis table. Percentages are calculated for each project/account/organization combination in the base. This percentage is multiplied by the total costs to allocate in order to derive the amount allocated to each base item. If the year-to-date allocation method is selected, the allocation cost history is subtracted to arrive at the debit amount to post. The credit side of the entry goes to the project to allocate and to the Account and Organization fields specified in the Credit Information group box.
Hours Incurred - The allocation method for "Hours Incurred" is the same as the "Cost Incurred" formula except that hours are used in the base instead of amounts.
Percentage - The percentage method summarizes the cost accounts for the fiscal year, period, and subperiod selected on the process screen to drive the costs to allocate. Any cost history is subtracted from the ceilings to arrive at the remaining ceiling amount. The specified percentages for each project are multiplied by the total amount to allocate. The remaining ceiling amounts are compared to the amounts to allocate, and the lower of the two values becomes the allocation amount. Where no ceiling exists, the amount to allocate is used. Any unallocated amount is added to the basis line that has "Y" (Yes) in the Apply Residual field in the Percentage Base subtask. The credit side of the entry goes to the project to allocate and the account and organization specified in the Account and Organization fields in the Credit Information group box .
This non-editable field displays the functional currency of the database.
Use the fields in this group box to select the allocation basis.
Select this radio button to make the allocation on a year-to-date basis. You cannot allocate employee or vendor labor hours if you choose this radio button.
Select this radio button to make the allocation on a current period basis. If you select this option, the Allocate Employee/Vendor Labor Hours checkbox will be enabled.
Allocate Employee/Vendor Labor Hours
Select this checkbox to allocate employee and vendor hours along with the cost amounts. This option is available only if you selected Current Period radio button.
Use the fields in this group box to select the rate type that you want to use for the Multi-Job Allocation Setup screen process. You should use the same rate type that was used in the Compute Revenue screen. Rate type selection will be available only if you have selected the Include Indirect Burden Costs checkbox.
Select this checkbox to include the applicable indirect burden costs from your project to allocate in the total amount to allocate.
Burden is included only for accounts that have a "Labor" or "Non-Labor" function code in the Project Account Groups screen. Although you can allocate indirect costs, they are not included in the basis for allocation. Selecting this option enables the Select Rate Type group box. If you selected the Current Period radio button in the Allocation Basis group box and you select the Allocate Employee/Vendor Labor Hours checkbox, this checkbox will be disabled.
If you selected "Cost Incurred" in the Allocation Method drop-down box, you can select this checkbox to include burden on the projects specified in the cost/hours base.
Select this radio button to use actual rates in the application of indirect costs to the multi-job allocation.
Select this radio button to use target rates in the application of indirect costs to the multi-job allocation.
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Note: Selecting the Actual Rates radio button can cause a circular process to occur in your compute burden process. For example, if you are allocating direct costs plus indirect burden at actual rates, you will first compute burden to determine the indirect costs to allocate, and then create and post the multi-job allocation entry. Then you will compute burden again to include the amounts from the multi-job allocation in your burden process. If any allocations go to a non-project account and that account is part of a cost pool, the pool may possibly allocate back to the multi-job project that previously allocated to the pool. By allocating at target rates, you can avoid this situation. It is also helpful to reserve a series of project numbers for the multi-job allocation projects to minimize the risk of circular burdening. |
Use this group box to designate the account and organization that will be credited for the multi-job allocation. The project to which this will be credited is the project entered in the Project To Allocate field.
Account *
Enter, or use Lookup to select, a valid account to use as the credit.
The account entered in this field must be a project-required account and a detail level account. The account must also be included in the allocating project's account group and any transaction validation screens that have been specified for this project. You should use this account only for the multi-job allocation. Post no other transactions to this account.
Enter, or use Lookup to select, a valid organization to use as the credit organization. The account entered in the Account field and the project entered in the Project To Allocate field will be used in combination with the organization entered here.
Enter, or use Lookup to select, a valid reference number 1 if your company is using the reference numbers for data entry features.
Enter, or use Lookup to select, a valid reference number 2 if your company is using the reference numbers for data entry features.
Use the fields in this group box to view the percent of allocation that remains to be applied. This field is used when you have selected the "Percentage" option in the Allocation Method drop-down box.
This non-editable field displays the percentage of the total that has not been allocated.
This field is used only when you have selected the "Percentage" option in the Allocation Method drop-down box. Use the table window in the Percentage Base subtask to enter a percentage to allocate to each project. The total entered in this subtask should be 100%. This field displays the total percent that has been entered in the table window.
* A red asterisk denotes a required field.
Select this link to open the Cost Accounts subtask, where you can enter the accounts that will be allocated to other projects. You can include all the accounts charged to the multi-job project or only a few accounts.
Select this link to open the Cost/Hours Base subtask, where you can enter the projects, accounts, and organizations that will receive the multi-job allocation.
Select this link to open the Percentage Base subtask, where you can enter the project, debit account and organization, the percentage to allocate, the residual flag, and dollar limit for each allocation.
Changes to this screen update the PROJ_ALLOC (Project Allocation) table.
