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 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 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 and Multi-Job
Allocation Labor History screens, respectively.
This screen has three subtasks: Cost Accounts, Cost/Hours Base, and
Percentage Base. These subtasks control the costs to allocate and the
basis for the allocations.
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.
Enter up to a six-digit code for this allocation. This code becomes
the identifier for this allocation setup. You may want to set up separate
codes for labor and non-labor allocations on the same project to separately
allocate the labor hours information for the labor accounts.
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 to allocate. The name of the selected project will
display in the adjacent non-editable field.
Use the drop-down box to select one of the
allocation methods. Valid selections and their allocation descriptions
are as follows:
Cost Incurred - First, the amounts to allocate
are summarized for the fiscal year, period, and subperiod selected on
the process screen. The performing organization develops percentages of
the total contribution. Next, 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 then calculated
for each project. Each base project is then multiplied by the costs to
allocate for each performing organization. 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 the account/organization
combination 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 - First, the amounts to allocate
are summarized for the fiscal year, period, and subperiod selected on
the process screen. 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 column in
the Percentage Base subtask. The credit side of the entry goes to the
project to allocate and the account/ organization combination specified
in the Credit Information group box.
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 is enabled.
Select this checkbox to allocate employee and vendor hours along with
the cost amounts. This option is available only if you selected Current
Period in the Allocation Basis group box.
Select Rate Type
These options are available only if you selected
the Include Indirect Burden checkbox. Select the appropriate rate option,
either Actual Rates or Target Rates. This selection should be the same
rate that you will use for burdening on the Project Status Reports and
Compute Revenue process.
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. You may also find it helpful to reserve
a series of project numbers for the Multi-Job Allocation projects to minimize
the risk of circular burdening.
Select this checkbox to include the applicable indirect burden costs
from your project to allocate with your direct cost amounts. Note that
burden is included only for accounts that have a "Labor" or
"Non-Labor" Function Code in the Project Account Groups screen
in Costpoint Project Setup. 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 is disabled.
If you selected "Cost Incurred" as your Allocation Method,
you can select this checkbox to include burden on the projects specified
in the cost/hours base.
Actual Rates
Target Rates
Credit Information
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 To Allocate selection.
Enter, or use Lookup to select, a valid account to use as the credit.
Note that the Detail and Project Required checkboxes must be selected
for this account in the Maintain Accounts screen in Costpoint General
Ledger. Also, the account must 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.
If your company is using the Reference Numbers feature, enter, or use
Lookup to select, a valid reference number 2.
Percentage
% to Apply Remaining
* A
red asterisk denotes a required field.
Cost Accounts
Use this subtask link to open the Cost
Accounts subtask. Use this subtask to enter the account that will
be allocated.
Cost/Hours Base
Use this subtask link to open the Cost/Hours
Base subtask. The information that you enter in this subtask will
serve as the basis for the allocation when the Allocation Method selected
is either "Cost Incurred" or "Hours Incurred."
Percentage Base
Use this subtask link to open the Percentage
Base subtask when using "Percentage" as the Allocation Method.
Table Information
Changes to this screen update the PROJ_ALLOC table.
