The Allocation of depreciation cost is used to distribute depreciation expenses across multiple projects.
How to create
To access Project Costs Allocation, go to Project costing → Project Costing documents → Project costs Allocations
Main tab
This tab is used to enter basic information for depreciation cost allocation, i.e., date, document number, entity, and the basis document.
- Transaction Type - Select Allocation of Depreciation Costs first to enable the fields.
- Basis - To assign depreciation costs to a project, it is mandatory to select the depreciation document in the Basis field. Use Fill by Basis to copy data in other tabs or reset changes.
- Comment - Add any notes about the allocation.
All allocations are in the accounting currency.
The “Use New Income & Expenses Reallocation Schema” option refers to an updated internal method (schema) used by the system to manage cost allocation logic.
Note: This is a system-controlled setting and is not amendable by users.
Allocation of Depreciation cost
This tab is available only for documents with the Depreciation Cost Allocation transaction type. It contains two tables: the Depreciation Costs table and the Allocation results.
Depreciation Costs table
Automatically populated based on the depreciation calculation document selected on the Main tab.
- Cost Item – The cost category being allocated.
- Fixed Asset – An asset that generates the depreciation expense, which is further used for allocation.
- Expense Item – The GL expense type to which this cost belongs.
- Business Activity – The type of business activity linked to the cost.
- Department – Department responsible for the asset or cost
- Amount – Depreciation value recorded in transaction currency
- Amount (National Currency) – Depreciation value converted into the base currency i.e., national currency.
- Allocation Results - Displays the depreciation costs allocated to projects.
To allocate costs, click the Allocate by Time Card button. The system will automatically distribute the depreciation costs according to the time card data of the fixed assets, i.e., based on the used hours recorded in Time cards.
The system checks the time card dates and compares them with the Project Cost Allocation period.
Only time cards that belong to the same period are considered for allocation.
Allocate by time cards (Check how time card date and project cost allocation dates are linked).
Remaining budget amount
columns in the allocation results.
Recognized by the time card table. (used to reverse expenses accrued by time cards if they happened in the same period).
