Distribute Costs, Purchase Order Line

Explanation

This functionality is only allowed for non-inventory registered purchase parts, no-number parts and inventory purchase parts when the ownership of the purchase order line is Company Rental Asset. This means that, if the current part is an inventory part with another ownership, the Distribution tab in the Pre Posting dialog box will not be accessible.

Distribution of costs means that you have the option to enter pre-postings that are distributed to various accounts. It is possible to change the distribution of costs in terms of code part values and percentages as long as the order is below the Closed status. When entering the percentages, you should note that the sum of the percentages must total 100%.

Whenever a financial transaction takes place in the system the postings concerning it are created by the predefined posting types and rules defined in IFS/Accounting Rules. This means that you do not have to do anything manually as long as you have defined your rules correctly.

However, sometimes you want to decide a code part value, depending on specific purchase order information, i.e., you choose not to decide a rule for this code part for all posting types affected or it is not possible to decide a rule. In these cases, you must manually establish the relationship between the code part and the purchase order by entering a pre-posting connected to the purchase order. The code part value that you enter as a pre-posting for the purchase order will then affect several postings created for this purchase order. One example is a purchase order where you want the postings for purchasing to charge a specific Cost Center.

If you try to enter a pre-posting for an purchase order and have not entered the use of pre-posting in IFS /Accounting Rules, you will receive a message informing you that pre-posting is not defined for this order type in the posting control. Initiate the pre-posting function in the Posting Control. Indicate the appropriate posting type for the code parts you intend to alter.

The postings that will be affected by the pre-posting are generally all postings concerning expenses, revenues, and WIP. This is determined in Business Events where you can see whether a posting for a specific posting event is affected by the pre-posting on the purchase order or not.

The pre-posting can either be entered on the header or the line. The advantage of using the pre-posting on the header is that the pre-posting value is valid for the lines as well. However, this assumes the lines are added afterwards. If both header and lines are already entered, you must do the pre-posting on each line.

To simplify the reading of the necessary procedure (below), note that there are two different procedures available for cost distribution in the Purchase Order and Purchase Orders windows.

Prerequisites

• You must specify that cost distribution is allowed. Do this in IFS/Accounting Rules, Posting Control. Add the posting type M117, Distributed pre-accounting purchase order no part lines for no-number parts. For non-inventory registered purchase parts and company rental asset inventory parts, you should add the posting type M116, Distributed pre-accounting purchase order no part lines. You should also specify a control type by using the List of Values.
• The purchase order header must have been entered and saved.

System Effects

The pre-posting is distributed to the specified accounts. The code part values you define in this dialog window will affect the postings created for the transaction. A checkbox in the upper part of the Purchase Order window indicates that the pre-posting functionality is in use.

Window

Purchase Order
Purchase Order Lines

Related Window Descriptions

Purchase Order
Purchase Order/Part Order Lines
Purchase Order/No Part Order Lines
Purchase Order Lines
Pre Posting
Pre Posting/Distribution

Procedure

Initiate cost distribution in IFS/Accounting Rules.

1. Open Posting Control and select New.
2. Either enter the posting type or use the List of Values to indicate it.
3. Either enter the code part on which you want to distribute pre-posting or indicate it by using the List of Values.
4. Either enter the appropriate control type or use the List of Values to indicate it.
5. Optionally, you can indicate a default value for the control type.
6. Save when completed.

Distribute costs on purchase order line.

1. Populate or query for the purchase order for which you want to distribute the pre-posting.
2. Select the line for which you want to distribute the pre-posting.
3. Select Pre Posting Order Line... in the Operations menu.
4. Select the Distribution tab, and then select New.
5. Enter the percentage you want to assign to an account.
6. Use the List of Values to indicate the code part value in the code part column(s).
7. Repeat steps 4 - 6 in order to add additional percentages and to distribute the pre-posting to different accounts.
8. Click OK when completed.

Distribute costs in the Purchase Order Lines window.

1. Populate or query for the purchase order for which you want to distribute the pre-posting.
2. Select the order line for which you want to distribute the pre-posting.
3. Select Pre Posting... in the Operations menu.
4. Select the Distribution tab, and then select New.
5. Enter the percentage you want to assign to an account.
6. Use the List of Values to indicate the code part value in the code part column(s).
7. Repeat steps 4 - 6 in order to add additional percentages and to distribute the pre-posting to different accounts.
8. Click OK when completed.