Removing Records of Cost Not Assigned to Any Cost Center

Reallocate Posts of Cost Not Assigned to Any Cost Center

In the chapter (Reallocate posts of Cost by Using Distribution Keys) we reallocate all costs to departments and cost centers. It was not important if there was originally posted without department or cost center or to some general cost center of department. Costs are therefore transferred from general cost center to the others. We can reallocate costs also to different cost center not only departments.

In the chapter (Reallocate Posts of Cost Not Assigned to Any Department) we reallocate only costs without department information.  It is also possible to have posting without cost center when we do not know the right one. All posts that already have cost center will leave unchanged and will reallocate only ones without cost center.

In such a case, we can use the following trick that allows us to use wildcard characters.

 1. Required Settings

The parameter setting is reasonable identical to that already described in the previous example reallocate posts of cost by using distribution keys in reallocate posts of cost not assigned to any department.

Somewhat different is only the consideration due to the different types of costs and their allocation to cost centers.

Example:

Let us take a service company which all direct costs or allocate directly to appropriate cost center. Also costs for salaries are allocated directly to cost center that belongs. There are some labor cost that are not possible to directly allocate to cost centers. Those are: expenses for meals, holiday allowances, bonuses and similar. Company defines distribution keys to allocate also that kind of costs to their cost centers. Each cost can have its own distribution key.

When the cost can not be attributed to a particular cost center, it can be posted:

1. to the general cost center or
2. without giving any cost center.

In these cases the same posting templates can be used. Difference is in criteria we use in Allocation according distribution key form:

1. Cost center code at criteria "Cost Ctr.". An example:

2. or by using  Wildcard Characters, quote some signs that we are sure not to exist in the cost center register.See the example below.

1. Payroll Report

There was 86.236,15 EUR labor cost in July 2015 posted on account group 47. 

Labor costs was partially post directly to cost centers as follows:

35.970,00 EUR to Project 1,

40.166,50 EUR to Project 3.

It was 10.099,65 EUR unallocated labor costs. According to internal rules these costs are posting in relation with direct costs in current month to cost centers.

35.970,00/76.136,50 = 0,4724 (relative share for Project 1 in directly allocated labor costs is 47,24%)

40.166,50/76.166,50 = 0,5276 (relative share for Project 3 in directly allocated labor costs is: 52,76%)

Total labor costs was posted to departments as follows:

45.518,15 EUR Department 1

40.718,00 EUR Department 2

The relative share of representation Departments:

45.518,15/86.236,15 = 0,5278 (relative share for Department 1 in total labor costs is 52,78%)86236,15

40.718,00/86.236,15 = 0,4722 (relative share for Department 1 in total labor costs is 47,22%)

The easiest way to get data is by using report  trial balance, filter to account group 47% and restrictions on dates Date from 01.07.2015 To 31.07.2015.

Calculation of distribution keys for costs without cost center:

Department 1, Project 1 = 0,5278 * 0,4724 = 0,2493

Department 1, Project 3 = 0,5278 * 0,5276 =  0,2785

Department 2, Project 1 = 0,4722 * 0,4724 = 0,2231

Department 2, Project 3 = 0,4722 * 0,5276 = 0,2491

2. Distribution Report

We allocate monthly labor cost to cost centers due to monthly reporting.

Start from Posting Template by using Button Calculation. Next step is to define dates Posted from 01.07.2015 to 31.07.2015. Period date should be set on last day in reporting period. In our case that would be 31.07.2015.

We need to get all posts that don't have cost center. Enter combination of signs to Cost Ctr. field: space, space and character %.

It is recommended to review data before posting. We can use report 10J - Report by Lines - Detailed and we find out that Pantheon selected only postings without cost center as we planed in criteria.

3. Journal Entry for Posting Split by Distribution Key

We post new positions according chosen template with distribution key by Posting button  .

An existing position will be canceled as it was originally posted(value, account, department, cost center) and new will be added as defined in template and distribution key (department, cost center and percentage of original value). New positions will have departments and cost centers from distribution key.

4. Account Card 

5. Trial Balance by Cost Centers - All Journal Entries

6. Trial Balance by Cost Centers - Excluding Journal Entry with allocation of costs