Reallocate Posts Using Distribution Keys
Distribute cost, revenues and expenses. where you want to monitor transactions by departments (profit centers) and cost centers, in the document. This way the data are automatically transferred to general ledger.
Invoice Issued:
1. Enter department in line of invoice issued, to which you assigned the value of revenue incurred, VAT value including. These two categories are posted by departments AUTOMATICALLY if document line contains a reference to department (see Lines in Issue).
2. It is different with receivable: It is posted (among others) by departments only if you selected so in Administration Panel | Program Parameters | Financials | General.
If you can identify to which department does the revenue of the corresponding item belong, mark it in issue documents accordingly. Becasue sales of own assortement of goods or services are in question, you can mark or set it relatively easily.
If on revenue account where you monitor sales by departments, you can set the checkboxes in Chart of Accounts accordingly.
Invoice Received:
1. Enter department in line of invoice received, to which you assigned the value of cost incurred, VAT including. These two categories are posted by departments AUTOMATICALLY if document line contains a reference to department (see Lines in Receiving).
2. It is different with payable: It is posted (among others) by departments only if you selected so in Administration Panel | Program Parameters | Financials | General.
a question arises in invoices received how to act in case of cost burdening different company departments. To this end, the following function is available Distribution using distribution ley:
- with invoice received. The advantage of this sort of distribution is in making available the overview by departments in Goods module (e.g. in invoice received report) and at the same time in the general ledger. Of course, the type of distribution used has to be set when entering the invoice, that is, prior to actually posting it. Weaknesses of such a type of distribution can clearly be observed in case of small and un-rounded amounts as well as in case of shares which prove to be relatively small for individual departments. In such cases there can occur errors in rounding differences that are required for leveling of value. The cost as well as tax are distributed. Yet this data is required only with the cost account. If you select a wrong key or anything similar, you must enter the invoice once again.
- with journal entry. It is wiser to distribute in this way. The advantage of this type lies in the fact that only the record where you actually want to distribute by departments is concerned. If you made a mistake, you can automatically repost the document that you did not use in distribution and repeat the procedure.Weaknesses of such a procedure si that you can simply miss any line. Subsequently run checks of distribution keys used in individual cost accounts are also quite slow. Checks in Goods module are in this case not available.
- with templates for automatic posting. It is the simplest and most easily viewed way of subsequent distribution using distribution keys. Using it you reverse the existing posts and create new ones, which are distributed by departments using distribution key. They are also displayed in a separate posting document type. The advantages of using such a method are the following:
- You are aware that you can always expect balance 0 (reversed old post and a newly-created one) when using this journal entry, otherwise an error occurred
- If you made a mistake using distribution key or the latter is changed in accordance with a subsequent agreement, simply delete the journal entry used in distribution, correct the template for automatic posting and repeat the procedure. Here you are not required to change original posts in the general ledger neither the original document received.
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For examples of use see:
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The above examples are also suitable in distributing revenues the only difference being that collection of liability and asset balance on account or group of accounts is adjusted accordingly! |