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 cannot be amended 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 of the fixed Asset.
• 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.

Once the basis is chosen and “Fill by Basis” is clicked, the system checks whether the asset is assigned to any active projects. If the asset is being used across multiple projects, its depreciation expense is distributed accordingly.

Alternatively, click the “Allocate by Time Card” button. The system will automatically distribute depreciation costs based on the time card data of the fixed asset, i.e., according to the usage hours recorded in the time cards. Only time cards that fall within the same period are considered for allocation.

• Project - Project receiving the allocated depreciation cost.
• Project Task - Specific task within the project where the depreciation cost is allocated.
• Project WBS - Work Breakdown Structure level used for detailed depreciation allocation.
• Factor - Percentage or weight used to distribute depreciation cost among projects.
• Amount - Depreciation cost allocated to the project in transaction currency.
• Amount (National Currency) - Allocated depreciation cost converted into the company’s base currency.
• Remaining Budget Amount -
  1. Project - The remaining project budget after depreciation allocation.
  2. Project Task - Remaining task-level budget after depreciation allocation.
  3. Project WBS - Remaining WBS-level budget after depreciation allocation.

Recognised by time cards

The Recognized by Time Cards tab is used to distribute and adjust fixed asset depreciation costs based on the actual time the assets were used. Data appears in this table only when time cards with the cost allocation option enabled are recorded within the same accounting period and share the same analytics, including project, department, and fixed asset.

The system can reverse previously allocated depreciation transactions and generate new allocations according to the usage hours recorded in asset time cards. This allows depreciation expenses to be allocated accurately to projects based on actual asset usage.

Only time cards entered within the selected accounting period are included in the allocation process, ensuring depreciation costs are posted to the appropriate period.

• Reverse - Checkbox showing whether the depreciation allocation entry will be reversed.
• Project / Project Task / Project WBS - Shows where the original depreciation cost was allocated.
• Business Activity - Business operation related to the depreciation cost.
• Resource - Fixed asset or equipment linked to the reversed depreciation cost.
• Expense Item / Cost Item - Defines the type and category of depreciation cost being reversed.
• Time Card - Reference to the original asset usage record.
• Quantity / Amount - Usage hours and depreciation cost amount being reversed from the project ledger.

Additional Information tab

On this tab, users can enter optional details for the document, such as the department and the person responsible for the allocation. No fields are mandatory.