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How to: Set Up Allocation Source and Targets

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Each allocation consists of an allocation source and one or more allocation targets. The allocation source defines which costs will be allocated. The allocation targets determine where the costs will be allocated.

To set up cost allocations

  1. In the Search box, enter Cost Allocation, and then chose the related link.

  2. In the Cost Allocation window, on the Home tab, choose Edit.

  3. Enter an ID for the allocation source in the ID field.

  4. Define a level as a number between 1 and 99 in the Level field. The allocation posting will follow the order of the levels.

  5. Enter a cost type to define which cost types will be allocated in the Cost Type Range field. If all costs for a cost type are allocated, no range is defined.

  6. Enter a cost center together with costs to be allocated in the Cost Center Code field.

  7. Enter a cost object together with costs to be allocated in the Cost Object Code field. Most often, this field stays empty, because cost objects are rarely allocated to other cost objects.

  8. Enter a cost type in the Credit to Cost Type field. The costs that are allocated will be credited to the source cost type. The credit posting will be posted to the cost type given here.

  9. On the Lines FastTab, define the allocation targets. On the first line, enter a cost type in the Target Cost Type field. It defines which cost type the allocation is debited to.

  10. On the first line, enter the first allocation target in the Target Cost Center field or Target Cost Object the field. These two fields define which cost center or cost object the allocation is debited to. You can only fill in one of these fields, but not both.

  11. Repeat the same steps on the second line to set up additional allocation targets.

  12. After you have set up the allocation target and sources, on the Home tab, in the Process group, choose Calculate Allocation Key to calculate the total share values.

Note

Select the Blocked check box to deactivate the allocation setup.

See Also

Tasks

Scenario Example: Defining Static Allocations Based on Allocation Ratio
Scenario Example: Defining Dynamic Allocations Based on Items Sold

Concepts

Setting Filters for Dynamic Allocation Bases
Define and Allocate Costs
Terminology in Cost Accounting