Cost Center Allocation
Splits one cost center's postings across others by percentage from a date. GL Entries are split at posting time.
In detail
A Cost Center Allocation splits whatever is posted to one cost center across several others by percentage from a given date. If Shared Services is allocated 60% to Main - YFF and 40% to Marketing - YFF, a Rs 10,000 electricity bill tagged Shared Services is written as two GL Entries of Rs 6,000 and Rs 4,000 at posting time. The split happens inside the document's own posting, so there is no separate journal and the total is unchanged. Submitted allocations lock; create a new one with a later date to change the percentages. The percentages must add up to exactly 100 or the allocation will not save.
Formula
Entry share = Document amount x allocation percentage / 100; shares must total 100%
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Utilities - YFF (Main - YFF) | Rs 6,000 | |
| Utilities - YFF (Marketing - YFF) | Rs 4,000 | |
| Creditors - YFF (Electricity supplier) | Rs 10,000 |
How to record it in BRAccount
- 01Go to Invoicing > Cost Center Allocation > New.
- 02Pick the Main Cost Center that will be split, for example Shared Services - YFF.
- 03Set Valid From and add rows with the target cost centers and percentages adding to 100.
- 04Submit. The allocation locks.
- 05Post a Purchase Invoice tagged with the main cost center; the GL shows the split as below.
When to use it
Create under Accounts > Cost Center Allocation. Submitted allocations lock.
Example from the demo books
Allocate Shared Services 60% to Main - YFF and 40% to Marketing - YFF.