Processing EM Cost Allocations
EM Process Cost Allocations charges overhead or other indirect costs to equipment from parameters on EM Allocation Codes. It is not required EM processing — use it only to post additional overhead. Each run creates cost-adjustment lines (EM Type A) in an open EM Cost Adjustments batch. Edit and post that batch before you purge it.
Flow: set up allocation codes → process here → review/post in EM Cost Adjustments.
Before you start
- Allocation codes exist (code 0–255) with Basis, Date Options, amount/rate, and post options (Cost Code, Cost Type, Debit Account, Credit Account required). If Debit Account is blank, GL comes from the EM department for the cost code and cost type.
- Equipment / Departments / Categories to Allocate is set to All, Assigned (tabs filled, often via EM Allocation Initialize), or Prompt for… (you enter them when processing).
- Basis Cost Types (Costs basis) or Basis Revenue Codes (Hours / Revenue basis) are listed on the code. For Cost basis with blank Cost Code/Type on the code, amounts post to the same cost code/type as the basis; basis cost types must appear on the Allocated Cost Types tab.
- Interface all costs the allocation is based on before you run Process. Missing or wrong basis costs mean: delete the Type A lines in Cost Adjustments, fix/interface the costs, then run the allocation again.
- Re-running in the same month does not back out prior allocations — each Process calculates and posts additional costs.
Steps
- Open EM Process Cost Allocations.
- Enter Allocation Date (date on all transactions in the batch; becomes Actual date in EM Cost Detail).
- Optionally check Reversal so every line is flagged Auto Reverse (1); unchecked = Regular (0). You can change reversal status later in EM Cost Adjustments. Auto-reverse lines are included when initializing reversals in EM Initialize Reversals.
- Enter Allocation Code. The form shows the code’s setup (equipment, departments, categories, basis cost types/revenue codes, amount or rate, and post-to cost code). Prompts depend on that setup.
- If the code uses Prompt for Equipment / Department / Categories, enter those values (F4).
- If Date Options is By Date Range, enter Begin Date and End Date. Those fields are unavailable when the code uses a specific month.
- Confirm or enter Amount to Allocate and/or Rate to Allocate (defaults from the code; 0.00 / .000000 on the code forces entry here). Positive or negative (example: refund of a prior allocation = negative). For revenue or costs basis, rate is a percent of the basis; for hours, rate is dollars per hour.
- Select Show Basis to see the basis amount used (for Costs: total costs posted for the specified equipment, departments, and categories).
- Select Process. On success, allocations are added to the Cost Adjustments batch for edit. Close and process additional codes as needed. If Process fails, the message lists the reason(s).
- Open EM Cost Adjustments, review Type A lines, then validate and post the batch.
Allocation bases (on the code)
| Basis | Uses |
|---|---|
| Costs | Total dollars posted to basis cost types |
| Hours | Revenue/usage hours (time or work units × hours per unit for each basis revenue code) |
| Revenue | Total revenue/usage dollars on basis revenue codes |
| Variable | A variable on EM Equipment (standard examples: PurchasePrice, CurrentAppraisal, ReplCost, LeasePayment, or custom fields) |
Accumulated dollars, hours, or revenue follow Date Options: By Month or By Date Range.
Amount/rate can be a flat Allocation Amount, Allocation Rate, or an Equipment Amount/Rate Column from a custom field on EM Equipment (VA Custom Fields Wizard on EM Equipment). A bDollar custom field used as a rate is converted (example: 250.00 ÷ 100 hours = 2.5 × 100 = 250.00), not added as a flat dollar.