Define Cost Allocation

This option is used to set up default cost allocation journal entries to use when making specific payments through disbursements or vouchers. The purpose of this option is to allocate percentages of a defined expense to selected branches or departments that make up your agency structure. For example, if your Commercial Lines department is responsible for 65% of the expense for rent and the Personal Lines department is responsible for the remaining 35%, you can set up default entries through this option to have TAM automatically divide the cost between the two departments. When you enter a cash disbursement to pay the rent, the system automatically applies the entry to the appropriate General Ledger accounts for these departments using the percentages defined here.

1. At Home Base, click Utilities.
2. On the Utility Manager screen, open the Accounting folder in the treeview.
3. Open the GL folder.
4. Select Define Cost Allocation.
5. Click the arrow to continue.
6. Double click in the Journal # field to select the appropriate cash journal.
7. If multiple agencies in your accounting structure share the cash journal, double click in the Agency field to select the appropriate agency.
8. Enter a name for the entry in the Entry Name field. This name displays when you enter cash disbursements. Press [TAB]. You are prompted, "Is this a new cost allocation entry name?" Enter Yes or No.
   
   Note: To revise an existing entry, double click in the Entry Name field and make a selection.
9. Enter a descriptive Title to further identify the entry.
10. In the Brch field, enter the code of the first branch to which to apply this entry. You may also double click in the field to select a branch.
    
    To automatically distribute the percentages of the expense evenly among branches within the selected agency, enter X in the space provided.
11. In the Dept field, enter the code of the first department to which to apply this entry. You may also double click in the field to select a department.
    
    To automatically distribute the percentages of the expense evenly among the departments within the selected branch, enter X in the space provided.
12. Double click in the Account field to select the account that will offset this entry.
    
    Enter ALL if you wish to determine the offsetting account when applying the allocation.
13. Optionally double click in the Schedule field to select a schedule to associate to this line.
14. Enter a Description for the line.
15. In the % of total field, enter the percentage to allocate to the specified branch/department. For example, if a selected department is responsible for 30% of a specific expense, enter 30 in the space provided.
16. Click Accept to enter the line.
17. Repeat steps 10 through 16 to enter the remaining lines of the entry. When you are finished, make sure that the total for the percentage column equals 100 percent.
18. The following options are available on this screen:
    • New Journal: Start over from step 6 and add a new cost allocation entry.
    • Percent: Revise the percentage amount for the currently selected line.
    • Revise: Edit the currently selected line.
    • Delete: Delete the currently selected line or the entire entry.
    • Entry>: Move to the next entry on file for the selected cash journal.
    • <Entry: Move to the previous entry for the selected journal.
    • (L)ist: View or print a list of all cost allocation entries for the selected journal, along with their detail rows.
    • OK: Save and close the entry.
    • Cancel: Return to the Utility Manager screen.